Monday, March 14, 2016

Markets to face trouble in 2016 - 2017 according to Jim Rogers

We are going to have serious problems in 2016 and 2017. It will be worse than 2008. I expect markets to collapse like they did in 2008. It started in the middle of 2014 and that has been going worse and worse. I don't know when the market will hit rock bottom but probably next year will be the worst. 

It's going to be the U.S. again because America is the largest debtor nation. But this time, Portugal is going to go bankrupt, Italy is going to go bankrupt and the U.K. is going to collapse. It's going to happen in a lot of places.

The debt was not much higher everywhere in the world in 2008. Then much of Asia and China had a lot of money saved up for a rainy day. They started spending when it started raining.

But China has a lot of debt itself now. Singapore is not in as good shape as it was in 2008 and 2009. Korea has a lot of debt. Even Asia is not able to help as it did last time. So the problem is going to be much worse.

We need to clean out the system. There is a huge amount of debt and money printing built up over the past 40 years. The sooner we clean out the mistakes, the sooner and better we start over.

In 2015, twice as many stocks in NYSE were down as up. The average was flat but that was only because of nine or 10 big companies. They kept the averages up. The average is different from breadth. Breadth started deteriorating in the middle of 2014. It has been going down for 18 months because investors know something is wrong and they are taking their money out. Markets are frequently smarter than all of us.

No matter what measures you use worldwide, we won't have a proper recovery because it has been artificial. It's based on a gigantic amount of money printing and debt spending all over the word, especially in the US.

Could we be nearing the end game ?

Since the system was not able to clean itself and since it's all artificial, we are facing a serious problem. In the U.S. we have economic recession every four to seven years and we are going to have one. They have tried to stop collapse several times and they have stopped it. They are going to try to stop it this time and we will have a few rallies but basically we are coming to the end and it's going to be very serious.

So this is a terrible system economically, and terrible morality. But they don't care about morality.