Jim Rogers isn’t selling his stocks yet, but he thinks that the U.S. market is heading for a ‘catastrophe’ at some point in the not-so-distant future.
“This is the first time in recorded history that we have every major central bank in the world printing money, so the world is floating on an artificial sea of liquidity,” Rogers tells CNBC. “Well, the artificial sea is going to disappear someday, and when it does, the catastrophe will be even worse. Yes, it’s coming,.”
Rogers also thinks a pullback is just plain due. “Throughout American history, we’ve always had slowdowns every four to six years,” he said. “That means that sometime in the next couple of years — three years, maximum — we are going to have problems again, caused by whatever reason. For instance, there was 2001 and 2002, and then 2007 and 2009 was much worse. Well, the next time it’s going to be worse still, because the level of debt is so, so, so much higher. Every country is increasing its debt at the same time.”
Still, Rogers isn’t shorting stocks. “I don’t see any reason to rush out and sell stocks now, because of these artificial currents which are taking place,” he said. “I’m not buying U.S. shares at the moment, but I’m not shorting either, because I am concerned this may turn into a huge bubble. So I’m sitting and watching.”