Hedge Fund Millionaire Jim Rogers Fears Australia Will Suffer A Downturn Worse Than Great Depression

Justin, the world has been going on for a few thousand years and there have always been big changes and adjustments. They should have opened their currency to make it a convertible currency.

jim rogers recession

Hopefully, you already have a decent proportion of your pot in cash for rainy days. “I would start by getting the idea — wherever the idea came from. The very next thing is the spreadsheet, going back as many years as possible into a particular company, or industry,” he says, adding that he also analyses insiders’ buying or selling of shares. We have taken reasonable steps to ensure that any information provided is accurate at the time of publishing. If you require any personal advice or personal recommendation, please speak to an independent qualified financial adviser. The Financial Ombudsman Service and Financial Services Compensation Scheme may consider certain investment related claims. Please refer to FOS and FSCS for up-to-date information, including eligibility criteria.

Jim Rogers Predicts A New Recession In 2012

You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. The material is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

  • He is, after all, an expert at navigating market conditions like these.
  • This occurred after Japanese publishing company Kodansha interviewed Rogers in 2018 on how he believes the country is facing a fundamental, long-term crisis — from an aging population to fiscal failure.
  • Delivered online over two half-day sessions, the Multi-Asset Masterclass will look to provide a case for multi-asset investing as well as an outlook for the sector over the year ahead.
  • The value of stocks and shares and any dividend income, may fall as well as rise, and is not guaranteed so you may get back less than you invested.
  • Jim Rogers, the market sage, has warned the global economy is just two years away from another recession, but remains ill-prepared to cope with the after-effects.
  • The question on a lot of people’s minds is the state of the global economy.

In later years, Rogers’ daughters will no doubt be delighted and rightly flattered that their dad took the time to write a book for them, offering fatherly wisdom in abundance. But until then, as his children are some one and six years of age, Rogers may have to content himself with reading Harry Potter novels to them in the evening. Like his other works, Rogers outlines the benefits of embracing the simple when it comes to making money and indeed one’s way through life – work hard, learn, be patient – maxims all too often cited but rarely followed.

Rogers said the dollar was set to “go down a great deal” adding he hoped to get out of all his dollar holdings at some stage this year. Last week the U.S. central bank sharply lowered its forecast for U.S. economic growth in 2008 and said it was worried the economy could face further setbacks even after a series of aggressive interest rate cuts. DUBLIN – The United States economy is already in recession and is set for a further slowdown with the dollar expected to remain under pressure, investment guru Jim Rogers said on Monday. The fact is we are currently enjoying the second-longest bull market in history, stock valuations are high and we are starting to see classic late-cycle signs of exuberance in some markets. That said it would be foolish to exit markets on these factors alone as you could have argued these points for the last few years. We are relatively sceptical of stock market predictions but it is important to have some feel of where we are in the economic cycle and the range of possible outcomes that can occur going forward.

The lesson of the technology crash was many people got carried away with one fashionable sector without doing their homework. The same can be said of investing too much in one particular market, such as keeping all your money in UK shares when there are other global markets to consider.

Jim Rogers, chairman of Rogers Holdings, reckons we’re about to see the worst bear market of his lifetime. ‘At the moment, my view is it’s going to become in the next decade, certainly in the 20s, it’s going to be an extremely good place to have money because when things go wrong, and nations and currencies collapse, people buy gold and silver,’ he said. During times of trouble, gold is regarded as a safe haven asset and Mr Rogers expected this commodity to be resilient as a new crisis emerged. ‘The economy will not be as strong as the markets because there are too many problems,’ he said. Treasury is now forecasting Australia’s gross government debt levels climbing above the $1trillion level for the first time ever, which will make up more than 50 per cent of gross domestic product for the first time since World War II.

This occurred after Japanese publishing company Kodansha interviewed Rogers in 2018 on how he believes the country is facing a fundamental, long-term crisis — from an aging population to fiscal failure. I shorted oil on a Friday and it was on the weekend that Iran and Iraq went to war, so needless to say oil didn’t go down, it skyrocketed.

Why Extreme Market Predictions Like Those From Jim Rogers Provide No Value

One well-known investor has said that he thinks there’s a 100 per cent probability of the US economy sliding into recession within one year. How long that dynamic will last though, remains open to question. It’s on that basis that legendary investor Jim Rogers, the originator of the Rogers International Commodity Index, is holding dollars, at least for now.

Tax rules can change and their effects on you will depend on your individual circumstances. The FTSE numbers you read each day simply show how share prices are performing but ignore dividends. Many of the firms that make up the index have paid shareholders dividends – a share of the profits they make. By reinvesting any dividends your money has the potential to grow more over time. But dividends depend on profits being made and when economic crisis strikes, it can affect the profits of many companies. Check that you do not have all your eggs in one investment basket.

At 72p, Are Aston Martin Shares A Bargain Not To Be Missed?

We look back at events from the panic selling of 1987 to the tech sharebuying spree at the turn of the millennium. But using scare tactics to get people out of the markets isn’t helpful to anyone. Making extreme predictions about the markets comes with zero consequences because there are so many pundits these days that most forecasts are quickly forgotten. So there’s very little risk involved but if you ever happen to be right about a pending market crash you’ll forever be remembered as the person who called it. People who are contrarians for the sake of being a contrarian will read something like this and tell me it’s a sign of a market peak. There’s nothing wrong with expressing an opinion about the markets, be it positive or negative.

At the time Opto went to press, many were warning of a global recession. Indeed, in an effort to temper a global economic collapse, central banks and governments had been spending and printing copious amounts of money. Although it wasn’t known at the time these predictions, spoken from his home in Singapore in January, would prove to be prophetic. The markets had been enjoying a record-breaking bull run for eleven years, but by March there was a sea of red across the screens of investors and traders. In order to read or download the everything investing book smart strategies to secure your financial future pdf ebook, you need to create a FREE account. Within its sensibly brief running time Rogers conveys to his brood his life philosophy on working, ethics, investing, saving and indeed being happy. Justin, we had one of the great world markets of history in commodities for about 15, 20 years in the ’70s, between the ’60s and the early ’80s in commodities, because we had huge shortages everywhere and because governments everywhere printed money.

How To Make Your Money Last Through Retirementand Beyond

Investment guru Jim Rogers believes another recession will be due in about 2012, but the difference next time will be the inability of central banks to throw cash at the problem. Delivered online over two half-day sessions, the Multi-Asset Masterclass will look to provide a case for multi-asset investing as well as an outlook for the sector over the year ahead. Rogers reiterated he preferred investments in the agriculture sector in the light of tightening supplies worldwide. “There are so many people bearish on the dollar right now including me and normally when that happens something comes along to cause a rally even if it is a bear market,” he said. “As long as the (U.S.) central bank and the federal government keep making the mistakes, you will have a longer period of slowdown and it will be perhaps one of the worst recessions we have had in a long time in America,” he said.

jim rogers recession

Luckily for him, he had predicted a collapse was imminent, taking out short positions at the time. However, there was no way for him to know it would be so severe. The stock market crash of 1987 happened on his birthday, after all.

These journeys helped Rogers to further expand his grasp on how the world works making his investment insights highly sought after, despite his retirement. But all my life I just wanted to have more than one life.” And so he did. After leaving Wall Street, he occupied his time by circumnavigating the globe — twice. They started the fund with the postulate that the markets are always wrong, and stunned Wall Street by returning a massive 4,200% over the next decade. While the potential impact of this turn of events may be alarming to some, Rogers remains calm. He is, after all, an expert at navigating market conditions like these.

Keeping up to speed with the issues that could affect your investments is important for all smart investors. Read our latest articles to discover topical economic and market insight, investment ideas, and some of the trends which are shaping the world today.

He made a ton of money after founding the Quantum Fund with George Soros in the 1970s and retired in his late 30s to travel the world. A charlatan has also been described as someone who professes to have abilities or expertise that they do not have. The term”‘charlatan” is perfect for the finance industry because it can attract people pretending — whether they realize it or not — to know more than they actually do. In an open letter to Mr Rogers, David Simmonds and Ross Walker criticised what they described as his “Armageddon-esque vision of Britain”, and said that his argument “lacks rigour”. They added that although the UK financial sector faces “profound difficulties”, to say the UK has “gone to the dogs” was an exaggeration. Eeconomist at the Royal Bank of Scotland have hit back at veteran investor Jim Rogers over his claims that “the City of London is finished”. While there are increasing murmurs among economists, investors and analysts that another US recession could be on the horizon, the majority would disagree with this.

At some times in history, the financials types have been in charge; at other times in history the people who produced real goods have been in charge. The key of course is to figure out what’s coming next and go there. Use your ISA allowance by 5 April and start investing for the best moments in life, knowing you won’t pay tax on any money your ISA makes. Also known as a stocks and shares ISA, an Investment ISA is a tax-efficient2, simple way to invest for your future. Invest up to £20,000 per year and any returns you make are tax-free.

That doesn’t just mean spreading your pot between cash, bonds and shares but also within sectors. If you want to keep investing in the stock market, then think about regular investing. Less of your money is at risk from a sharp fall – and if the market dips you end up buying more for your money the following month. But remember prices might rise making your future purchases more expensive and your return therefore less. But overall, regular investing removes the pain of deciding exactly when to buy.

David Cumming, Aviva Investors’ chief investment officer for equities, last year witnessed turbulent times for UK equities but he remains positive about the market in which he has a personal as well as a professional stake. Investment Week is hosting its Fixed Income Virtual Briefing at a time of huge uncertainty for investors as they try to navigate their way through the market fallout caused by the Covid-19 pandemic. During this briefing, we will hear from a number of fixed income managers about their response to the extraordinary events of the past few months and how they have been navigating turbulent market conditions. Given that we invest our clients’ money for the long-term , we would be foolish to think that there will not be a recession or market correction within any client’s investment journey.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research.

Fascinating as it is to look back at past stock market crashes and their aftermath, we have no way of knowing what will happen this time round. But when interest rates fall so does income from savings – unless you have a fixed rate deal. Falling interest rates have a similar effect on the yields paid on bonds, which is an issue for income seekers.

‘One notable feature of this latest crisis was both how sharply market conditions deteriorated and how quickly they recovered,’ he told a foreign exchange webinar. ‘Frequently in history, we have blow-offs where markets go up a while and then there’s just a final gasp when in six months or a year, they double or triple again and that may well happen again. Institutions, investors and standard-setters are slowly waking up to the crucial role biodiversity plays in supporting economies worldwide.

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