Beware of market correction after H2CY21: Jim Rogers

Jim Rogers has long been skeptical of central bank actions. He criticized the excessive printing of money, huge spending and the easy liquidity policy adopted by central banks as a very short-sighted approach taken by politicians preferring populist measures that have big long-term ramifications. “Now is a terrible time to be young,” Rogers laments.

Now that this liquidity can support the markets for the first half of this year, or perhaps all this year, Jim Rogers warns of a pause or a reversal of this rally from 2022. “Seeing a bubble develop in many assets and geographies, the only cheap asset class I see are commodities, ”says Rogers. US tech stocks like Apple and Samsung are showing signs of a bubble, according to Rogers. “Almost everyone trades stocks and when everyone starts talking about stocks you should be concerned.

Rogers has also long been the US dollar. Did the correction make him reconsider his appeal? No, said Rogers. “We are in the midst of a steady and necessary dollar correction, I am still very long on the US dollar.” He warns that the US dollar is not in good shape because the US is one of the most indebted countries, but investors perceive it as a safe haven and that is why when problems arise , investors are rushing to the US dollar.

Rogers adds that the Chinese markets appear to be more lucrative than the United States. “The Chinese markets are still at 30-40% of their all-time highs, they are not as much in debt as the United States or Japan. They are in a better position than the United States,” he said, adding that ‘he invested in China. despite all the criticism around its opaque disclosures and regulations.