One of the co-founders of the legendary Quantum Fund made statements about how the next bear market will likely be the worst in almost 80 years, asd that younger investors will be the ones hurt the most. That would be Jim Rogers, the 78 year old co-founder of that fund with George Soros is reiterating statements he made that that central banks are eventually going to stop pushing money to the markets and that an artificial market bubble collapse will lead to a critically disastrous time in the future.
“It’s good to be old. Young people have a very bleak future ahead of them…If you look out the window, you’ll see printing presses everywhere,” said Mr. Rogers in an interview with the financial blog Peak Prosperity. “You know what happened to all the other countries in history that have gotten themselves deep into de, it hasn’t been pretty.”
He says that a good defense to keep yourself afloat from those weaknesses are that commodities are at major bargains compared to their equity valuations, in fact they are at their lowest under average to the equities market since the 1970s.
At an investment forum last week in Moscow called “Russia Calling” he made notion that leadership around the world failing during the coronavirus pandemic has made this even worse for the world economy “This is probably the worst [crisis] that I have seen in my lifetime, because everything collapsed and you had politicians and media and everybody overreacting in my view, and everybody closed down,” he has said. “We’ve had many epidemics in history, but never before did they close McDonalds, never before did they close all the airlines.”
On that the confirmed death count for COVID-19 in the United States eclipsed 230,000 and the infections crossed 9.1 million through the Johns Hopkins University study. The United States also had a one day record of new confirmed cases with 99,000. Rogers, who is known to be frank about possible negatives in the market, told those in attendance that the next bear market is “going to be the worst in my lifetime.”
We are not there yet here in the US, however last week was very poor. The Dow Jones Industrial Average dropped 6.5% during the week, the S&P 500 lost 5.6% and the NASDAQ Composite had 5.5% of it’s total disappear. This week may be different but last weeks results were not good by any stretch.
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