Tags: jim | rogers | stocks | fall

Jim Rogers: Stocks Will Fall Hard

By    |   Thursday, 21 May 2009 04:21 PM

Don’t let the stock market’s 30 percent-plus rally over the last six weeks fool you, says superstar investor Jim Rogers.

Equity prices are overvalued, he says.

“I’m not buying shares,” Rogers told CNBC. “The bottom will probably come later this year, next year, who knows when.”

And why should stocks drop? Because governments have "flooded the world with money," he says.

In the United States and other countries, the problem is too much consumption and too much debt, Rogers explains. But governments and central banks are trying to solve that problem with more the same.

This “defies belief" and won’t work, he says.

"I mean … you give me five or six trillion dollars, I'll show you a very good time, there's no question about that."

And what should you buy if not stocks? Commodities, Rogers says.

"Fundamentals for General Motors are not getting better. Fundamentals for Citibank are not getting better,” he points out.

“I can think of very few industries in the world where the fundamentals are getting better. But the fundamentals of commodities are getting better, full stop."

Rogers’ favorite commodities include the agriculture sector and silver.

Rogers isn’t alone in his views on stocks and commodities. As for stocks, hedge fund manager Doug Kass tells CNBC a “vicious correction is in store.”

On the commodities front, Bill O’Neill, former head of commodity research at Merrill Lynch, tells Moneynews.com, “With all the uncertainty around the globe, commodities as an alternative asset will be attractive.”

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
StreetTalk
Don’t let the stock market’s 30 percent-plus rally over the last six weeks fool you, says superstar investor Jim Rogers.Equity prices are overvalued, he says.“I’m not buying shares,” Rogers told CNBC. “The bottom will probably come later this year, next year, who knows...
jim,rogers,stocks,fall
247
2009-21-21
Thursday, 21 May 2009 04:21 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved