As global markets try an attempt to recover from the biggest losses after the global financial crisis in 2008, veteran investor Jim Rogers, however, believes that there’s worse to come.
Speaking to Bloomberg, Jim Rogers, Chairman of Rogers Holdings Inc, said that the “current rebound in the markets may continue for a while following a bout of extreme pessimism but another rout is imminent”. Well, this attributes to, he says, “triple whammy of coronavirus-fulled economic damage, high debt levels and interest rates that are now low- which will hurt when they rise.”
Rogers says he expects that in the next couple of years worst bear market of all times will be seen in the stock markets.
Well, the stocks on various stock exchanges have plummeted in the firts three months of the year amid the coronavirus scare that has hit the world. Even the tycoons in the industry posted its worst quarter since 2008 with billionaires even losing their rankings.
Despite various measures by governments to pump in liquidity in the economy, the situation still seems to not have gotten better amid the crisis. Even the central banks undertook emergency interest-rate cuts as a step to keep their economies afloat during such trying times.
Well, this is not the first time Rogers has expected bearish markets. Rogers who co-founded the Quantum Fund along with George Soros in 1970s had earlier said that bear market was imminent back in 2018, reported Bloomberg.
He says “the impact of the virus on various economies will not be over soon because there’s been a lot of damage already and a huge amount of debt has been added.
Further, he also says that when you have had bear markets, companies with low debt are the ones that people love the most because these are the companies that don’t have to worry about bankruptcy.