Rogers Holdings Chair Jim Rogers said in a recent interview with Real Vision that the U.S. dollar is “doomed and its fundamentals are “horrible” — but instead of running for the hills, he’s actually piling more investment in to take advantage of a coming last-gasp rally.
“People would think the U.S. dollar is a safe haven, it’s not. The fundamentals are horrible.”
“People would think the U.S. dollar is a safe haven, it’s not. The fundamentals are horrible,” Rogers said. “Nobody in his right mind would buy the U.S. dollar, but I own a lot — because I’m not in my right mind. I’m assuming that the rest of the world is not in its mind either and they’re all going to buy it.”
Rogers’ forecast shows he think the dollar will eventually be overpriced and turn into a bubble, which is exactly when he’ll sell.
“I’m not very good at market timing but I would expect it to be in the next period of turmoil,” he said, “which will be coming in the next two or three years.”
There are a lot of headwinds for the dollar, Rogers contends, because the U.S. is “the biggest debtor nation in the history of the world,” he said.
Meanwhile, countries like China, the world’s second-largest economy that just so happens to be locked in a trade war with said debtor nation, Russia and Brazil are working toward finding a new international currency to buy.
Rogers himself agreed with that particular move and said he himself will switch to the Chinese yuan and likely gold when he sees the end coming for the dollar’s lofty reserve status.
Rogers, who founded the ultra-successful Quantum Fund with George Soros back in the 1970s, doesn’t currently own any U.S. stocks, saying he’s mainly interested in Russian equities at this time.
And, yes, he still thinks the “worst bear market in my lifetime is coming,” he said, reiterating a point he’s made several times, including May of this year.
“No (I don’t know when it will happen), I will just say it will be the worst in my lifetime. It has been over 10 years since we had a serious bear market in the United States. I would suspect by the end of this year or next year, it will start,” Rogers said in May. “These things always start small, where people are not looking and then they work to the major markets, and then you see them on the major news.”