In his recent interview with Kitco News, Jim Rogers explained why the next the next bear market has to be horrible! Here’s an excerpt from the interview:
Rogers: I know more bear markets are coming and what I have said is the next one is going to be the worst in my lifetime, maybe we’re in it now, I don’t know you should watch Kitko news to find out. 2008 we had a problem of too much debt, Michelle since 2008 the debt, oh my God look out the window! The debt is skyrocketing everywhere. So the next bear market has to be horrible!
Host: Well assuming we’re in one right now and we know that the S&P500 is already down 20%, so sure looks like we are the ones that you have referred to as being the worst in your lifetime, the S&P fell by at least 50%. So by that calculation we still have at least another 30% to go down here.
Rogers: But before this bear market is over of course many stocks are going to go down 70 80 90 percent that’s the way bear markets work, of course that’s going to happen. I just don’t know when it is, watch Kitco News they will tell you.
Host: Well that’s why we have you on Kitco News. So it’s going to be worse because we have even more debt in the system?
Rogers: First of all it’s been 13 years since we’ve had big problems and that’s the longest in American history, could go for 30 years, who knows but it’s already overdue on a historic basis and it’s very very expensive.
And it always goes down a lot when it goes down, we have very high valuations, we have staggering debt, we have a lot of new investors coming in. Michelle it’s not my first rodeo, I’ve seen this movie, I know how it works, they’re all going to lose a lot of money, I hope I’m not one of them.
You can watch the entire discussion here:
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