Jim Rogers expects next bear market to be the worst he's seen

Veteran investor cites the level of debt that has accumulated since the financial crisis, especially in the U.S.
FEB 09, 2018
By  Bloomberg

Jim Rogers, 75, says the next bear market in stocks will be more catastrophic than any other market downturn that he's lived through. The veteran investor says that's because even more debt has accumulated in the global economy since the financial crisis, especially in the U.S. While Mr. Rogers isn't saying that stocks are poised to enter bear territory now — or making any claim to know when they will — he says he's not surprised that U.S. equities resumed their sell-off Thursday and he expects the rout to continue. "When we have a bear market again, and we are going to have a bear market again, it will be the worst in our lifetime," Mr. Rogers, the chairman of Rogers Holdings Inc., said in a phone interview. "Debt is everywhere, and it's much, much higher now." The plunge in equity markets resumed Thursday, as the S&P 500 Index sank 3.8 percent, taking its rout since a Jan. 26 record past 10 percent and meeting the accepted definition of a correction. The Dow Jones Industrial Average plunged more than 1,000 points, while the losses continued in early Asian trading Friday as the Nikkei 225 Stock Average dropped as much as 3.5%. Mr. Rogers has seen severe bear markets before. Even this century, the Dow plunged more than 50% during the financial crisis, from a peak in October 2007 through a low in March 2009. It sank 38% from its high during the IT bubble in 2000 through a low in 2002. "Jim has been talking about severe corrections since I started in business over 30 years ago," said Alibaba Group Holding Ltd. President Mike Evans, a former Goldman Sachs banker. "So I'm sure he'll be right at some point." Mr. Rogers predicts that the stock market will experience jitters until the Federal Reserve increases borrowing costs. That, he says, will be the point when stocks go up again. He said he'll buy an agriculture index today, reiterating his view that prices of such commodities have been depressed for some time.

Latest News

Secure Their Financial Future with Growth and Protection
Secure Their Financial Future with Growth and Protection

Can an annuity help your clients get there?

Edward Jones announces C-suite shakeup with eye toward next chapter
Edward Jones announces C-suite shakeup with eye toward next chapter

The leadership changes coming in June, which also include wealth management and digital unit heads, come as the firm pushes to offer more comprehensive services.

Harvard muni bonds a buy amid battle with Trump White House, Barclays says
Harvard muni bonds a buy amid battle with Trump White House, Barclays says

Strategist sees relatively little risk of the university losing its tax-exempt status, which could pose opportunity for investors with a "longer time horizon."

The great wealth transfer demands a wealth management revolution
The great wealth transfer demands a wealth management revolution

As the next generation of investors take their turn, advisors have to strike a fine balance between embracing new technology and building human connections.

Independent Financial Group taps industry veteran Keefe as new president, COO
Independent Financial Group taps industry veteran Keefe as new president, COO

IFG works with 550 producing advisors and generates about $325 million in annual revenue, said Dave Fischer, the company's co-founder and chief marketing officer.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.