Rogers said he has seen plenty of bear markets including the one in 2008 when there was too much debt.
“Well since then, the debt has skyrocketed everywhere. So the next bear market has to be the worst in my lifetime,” the author of Street Smarts: Adventures on the Road and in the Markets told ET NOW in an interview.
Rogers said he was stating a simple fact because gigantic debt has built up around the world and even China has debt now, which was not the case in 2008.
“So, debt is huge. We have to have the worst bear market in my lifetime. I am just trying to tell people to do a little research, I do not want to scare people. But they need to understand what is going on,” he said.
Rogers said there had been a lot of pessimism around and usually when there is a lot of pessimism, something comes along to make people optimistic again. That seems to have happened recently, he said.
“People think the central banks are going to calm down now.”
Rogers said the US had a 12 years long rally and the country had never had such a long bull run in American history.
“We always get excited at the end of a long bull market. Then things started calming down. We had huge pessimism because of inflation and other things, now it looks like maybe the inflation or the pessimism is breaking. But this will be the last rally,” Rogers said.
The investment guru said he does not believe in cryptocurrencies.
Rogers said if cryptos become successful as money, governments globally will react. Governments, he said, do not want to lose monopoly and will do something. He said the US government and every other government is working on crypto money.
“But when money is on the computer, the US government is not going to say okay this is your money now. If you want to use that money, you can. That is not the way the governments think, that is not the way bureaucrats think, they want control and they want to know everything,” he said.
Rogers said he owns gold and he hopes he does not ever have to sell it ever.
But if gold turns into a bubble, he said, he will sell it. “I own both gold and silver. I do not plan to sell either unless they turn into a bubble,” he said.
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