The suspected erroneous trades that caused stocks to tumble sharply yesterday should be investigated, says investor Jim Rogers, and solutions must be found if the New York Stock exchange is to maintain its reputation.
Erroneous high-speed computer trades are thought to have caused the Dow to drop as much as 998.50 points yesterday, the index's biggest intraday drop on record.
"Somebody should hang this New York Stock Exchange," Rogers told CNBC.
"They claim to be the center of the world's capitalism, of the world's financial markets, you would think that in 2010 they could sort out simple things like electronics."
However, Rogers also said that markets were overdue for a correction.
"It's time for a consolidation, there's always a reason for consolidation when it comes, the market went up for 13 months in a row, now we're going to, you know, correct for a while," Rogers said.
"In my view the correction should have started sooner."
Rogers, who says he holds no stocks now, advises buy commodities and currencies.
Rogers said he was long the dollar and the yen but "unfortunately" he was also long the euro, which economists predict will collapse.
"You never have enough shorts when things collapse," Rogers noted. "I think people should be looking for shorts or defensive positions because we're going to have problems for a while, at least in my view."
U.S. stocks were headed for a strong start today, but there was plenty of uncertainty because of yesterday’s violent swing.
"After the madness of yesterday, many people are hoping to see history repeat itself and get a pleasant surprise from the payroll (report) and see markets recover," David Jones, chief market strategist at IG Markets in London, told CNN Money.
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