The stock market is showing a strong upward trend in 2024, with both the S&P 500 and Nasdaq Composite posting double-digit gains so far this year. But famed investor Jim Rogers is sounding a warning.
In a recent interview with ET Now, Rogers said he is “very concerned” about the future.
Don’t Miss a Beat
-
Commercial real estate has outperformed the stock market for 25 years, but only the super-rich have been able to afford it. How can average investors become landlords at Walmart, Whole Foods, and Kroger?
-
US car insurance prices are skyrocketing and only getting worse, but you could shave off $29 a month in five minutes
-
These 5 magic money moves will help you climb America’s net worth ladder in 2024. Each step can be completed in minutes. Here’s how:
“The United States has not had a problem since 2008, 2009, the longest period in American history,” he said. “The United States, and the world, have long been due for a period of trouble.”
Such dire predictions might make a re-allocation of assets a top priority for the average investor, and for Rogers, that means prioritizing cash.
“I have a lot of cash. The reason I have a lot of cash is because I expect the next sale to be the worst in my lifetime because there’s so much debt everywhere,” he said.
Rising global debt, and particularly that of the United States, supports his concerns. According to the latest financial figures from the Treasury Department, the US national debt now stands at $35.21 trillion.
Save cash
Rogers knows a thing or two about navigating turbulent times: He co-founded the Quantum Fund with George Soros in 1973, at the height of a devastating bear market. From then until 1980, the portfolio returned 4,200%, while the S&P 500 rose 47%.
In an interview, Rogers said that despite having a lot of cash, he’s in no rush to put it to use.
“I’m not using cash yet. Again, I want to have more cash because the next time the market crashes, it will be the worst in my lifetime,” he stressed.
Rogers isn’t the only respected investor with cash on hand.
Warren Buffett’s Berkshire Hathaway also has a large cash reserve: Berkshire’s most recent quarterly report showed it had $224.2 billion in cash and cash equivalents as of June 30, 2024, up from $121.8 billion in 2023.
However, there may still be some areas of the market that could be profitable.
read more: With car insurance in the US rising to a staggering $2,150 a year, there’s a smart way to save money. Here’s how you can save $820 a year in just a few minutes (100% free)
If I were to buy it today…
To be fair, Buffett’s cash accumulation isn’t necessarily a sign of a pessimistic outlook, but in Rogers’ case, his strategy is rooted in concerns about the sustainability of the long-term bull market.
“Things have been going well everywhere for a long time now, and I’m concerned because any time in history when everybody’s making a lot of money, that’s a time to worry,” Rogers explained.
Despite his caution, Rogers noted there are some potential opportunities in the market.
“If I were buying today, I’d probably buy silver or agricultural products, but I don’t think I’ll do that,” he revealed.
Precious metals such as gold and silver are often seen as a hedge against inflation because they cannot be issued by central banks like fiat currencies. In 2024, gold attracted a lot of attention from investors, and its price reached new highs.
Silver has also been trending higher this year, but it remains well off its historic highs, and Rogers highlighted this divergence as the main reason for interest in silver.
“Silver is down 40 or 50 percent from its all-time high. Gold is hitting new all-time highs,” he said. “Silver is down. It’s hard to find anything that’s down.”
Rogers’ interest in agriculture follows a similar logic.
“I was optimistic about agriculture because agriculture is in a slump,” he noted.
Although agriculture doesn’t get much coverage in the financial media, it plays a vital role in the global economy – after all, food is a necessity, and investing in agriculture can be a way to leverage a vital sector through economic cycles.
What to read next
This article is for informational purposes only, should not be construed as advice, and is provided without warranty of any kind.
#America #problems #long #time #Jim #Rogers #market #crash #terrible #names #safe #haven #assets