Jim Rogers: expect a double dip by 2012


China and commodities bull Jim Rogers thinks the economy is going to eventually run out of gas by 2012. While he doesn’t call this a double dip, he does say that “the next time it’s going to be worse because we’ve shot all of our bullets.” With zero interest rates and huge government deficits all around, policy options are definitely more limited.

As for currencies, he sees weakness all around because of the ‘liquidity seeking return’ mentality in which stock markets are buoyed by easy money. The interesting thing is he claims he hasn’t bought any shares since November 2008 except in China. Rogers is a value investor, not a market timer like his former colleague George Soros; so he seems to be saying he is willing to forgo the 70% run-up in shares we have witnessed in the past year because of his fundamental bias.

Related Posts
1 of 1,546

He doesn’t sound too pessimistic about the US housing market, though. He notes the inventory overhang, but doesn’t predict a major selloff in prices. He just thinks it will be a long time before a sustained increase in house prices can resume.

Video below. It runs 4:33.

Subscribe to our newsletter

Also see the Bloomberg video Rogers Says He Holds `Massive’ Short Positions on Euro for his view on the Greek sovereign debt crisis.

Get real time updates directly on you device, subscribe now.

Do NOT follow this link or you will be banned from the site!