Market veteran Jim Rogers predicts a significant plunge in asset prices and a looming economic disaster, with plans to profit by shorting renowned stocks like Tesla Inc. TSLA and Nvidia Corporation NVDA.
What Happened: Rogers, who co-founded the Quantum Fund and Soros Fund Management with George Soros, sees bubbles in bonds, property, and stocks. He has offloaded a significant portion of his stocks and bonds in anticipation of a steep downturn, reported Business Insider.
“Bonds are a bubble, property in many countries is a bubble, stocks are getting ready for a bubble,” the veteran investor and travel author said in an interview with Soar Financially.
Rogers pointed out “warning signs” of an impending collapse, including a small group of stocks driving the major indices higher and novice investors bragging about their easy wins in the market.
His prime target to short, dubbed the “Magnificent Seven”, includes Apple Inc. AAPL, Alphabet Inc. GOOGL GOOG, Amazon.com Inc. AMZN, Microsoft Corporation MSFT, Meta Platforms Inc. FB, Tesla, and Nvidia.
“When the market comes to an end, the last high flyers are the best shorts,” he said.
“The stocks that have done extremely well and are very expensive — that, I hope, is where I’m smart enough to short next time around.”
See Also: Ed Yardeni’s 12 Reasons For Being Bullish On S&P 500 In Upcoming Year
Why It Matters: The United States’ escalating debt burden has been a long-standing concern for Rogers, who warned in July that it could lead to persistently high inflation and increased interest rates.
His warnings echo the sentiments of economist Peter Schiff, who predicted a recession and a resurgence of high inflation in 2024 due to the Federal Reserve’s efforts to restore price stability.
Despite economic growth and a robust job market, a December Bankrate survey revealed that 60% of Americans believe the economy is in a recession. This perception of economic decline is widespread across generations and income levels, contradicting the positive outlook of many economists.
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