Jun 27


Jim Rogers: Brexit Blowback “Worse Than Any Bear Market You’ve Ever Seen”

When it comes to being direct and offering up some truth, one can rest assured that Jim Rogers is a prime candidate to do both.

In an interview with Yahoo! Finance, the legendary investor had some candid and quite unnerving things to say about the global market in the aftermath of Brexit.

This is going to be worse than any bear market that you’ve seen in your lifetime. 2008 was pretty bad because of debt, well the debt all over the world is much, much higher now. Stocks in the US for instance have been going sideways for 18 months, 24 months. That’s called distribution by many people, so when you have distribution for a year and a half, it usually leads to bad things.”

If that was too upbeat, Rogers unveils his bear scenario:

“The bear scenario, the bad scenario is that Scotland now leaves and takes the oil money, the city of London gets whacked by Europe, they lose a lot of income. The UK already has huge international debts, and it has balance of trade problems, budget problems, so the bear case is the pound disappears and England becomes Spain, or Poland, or Italy or something.

“It won’t happen anytime soon but the deterioration will continue, it makes stocks go down a lot. Remember, stock markets are anticipating the future, they see that happening it will now lead to many other separatist moments in the EU. This is going to encourage a lot of separatist movement, I’m not saying it’s good or bad I’m just telling you what’s going to happen, or what the bear case is, that if all that happens we all should be very worried.”

Regarding where EU will be five years from now, Rogers doesn’t believe it will even exist:

The EU as we know it now will not exist, the Euro as we know it will not exist.

On how to play this market now,

“I’ll tell you what I’m doing, people have to make their own decisions, going into this I’m long the US Dollar, I’m short US stocks, I own some Chinese shares, I own agriculture around the world. These are things that might do well no matter what happens going forward. These are going to be perilous times, I hope I get it right.”

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2 Responses to “Jim Rogers: Brexit Blowback “Worse Than Any Bear Market You’ve Ever Seen” (Video)”

  1. henk korbee Says:

    Usually people do have a romantic view at life especially when one is young whic is a condition for revolutions. Now it seems that yes-voters in UK realizing what they have voted for. That Farage , Johnson don’t had a plan if they would win the referenda is not unbelievable as they were using the EU to blew up the EU and did not start thinking further. That is there great quality. Blame yourself if you have voted for these guys.

  2. Lana Verdin Says:

    To Henk Korbee: Greece is bankrupted by the financial mob, although it has gas and oil reserves, which would have allowed it never to have needed any loan from anybody. Italy is bankrupt. Spain is bankrupt. Portugal is bankrupt. France is bankrupt. Belgium is bankrupt. Tell me, what good things do you further expect from the EU and the Eurozone and what things have gone better so far since the start of the EU/Eurozone? And please no arguments like ‘I don’t need a passport or to change money when I travel in the EU, or I can live, work and retire in one of the countries of the EU.

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