Jim Rogers: Enjoy This Market Hoorah Before the Worst Correction of Your Lifetime
(Kitco News) - Legendary investor Jim Rogers says market participantsshould enjoy the rally in stocks while it lasts, issuing a dire warning that“the worst correction of his lifetime” is coming.
U.S. stocks opened higher on Monday as the corporateearnings season continued, with Bank of America reporting better-than-expectedquarterly results.
The Dow Jones Industrial Average rose 182 points, or 0.75%,to 24,542, the S&P 500 was up 0.6% and the Nasdaq rose 0.35%. Leading theDow higher were Merck & Co. (MRK) and UnitedHealth Group Inc. (UNH).
“Soon something’s going to happen that will make everyonehappy again and the market will go up one more time, and that will probably bethe last hoorah. Next year will be not a lot of fun,” Rogers said in aninterview with Kitco News on Monday.
He added, "It’s been 10 years since we have had a bearmarket. That is very, very unusual, so the next bear market is going to be theworst in my lifetime."
When promoted to quantify the correction, Rogers said itwould easily be over 50%.
Turning to gold, last Wednesday the metal reached itshighest level last since August 2016 as jitters grew over Syria and Russia.
Many analysts expected the metal to start the week stronggiven the geopolitical tensions, yet gold prices were trading near unchanged inearly U.S. dealings Monday. June Comex gold futures were last down 10 cents anounce to $1,347.80.
“When there is a lot of bad news and something like golddoesn’t go up, it means it’s not going to go up - the correction is not overfor gold,” Rogers explained.
"If gold goes to $1,000, I hope I am smart enough tobuy a lot of it. Because, before this is over, gold is going to go through theroof - when people lose confidence in governments and paper money, they alwaysbuy gold and silver, whether they should, is irrelevant, they always have,”Rogers, the 75-year-old chairman of Rogers Holdings Inc., said.
By Daniela CamboneFor Kitco News
Follow @DanielaCambone
dcambone@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.