, Jim Rogers Blog: Global Investing Giant Jim Rogers Warns Of Cyclical Downturn Soon

Thursday, August 24, 2017

Global Investing Giant Jim Rogers Warns Of Cyclical Downturn Soon

At FreedomFest, commodity guru Jim Rogers warned that the U.S. economy’s historic pattern of enduring a downturn every four to eight years indicates people should prepare for such a prospect to occur in the next 2-3 years. Worse, because today’s debt load is larger than in 2008, we could be in an even more severe problem the next time the economy falters.

“If you’re not worried, you are not knowledgeable,” Rogers said.

I chaired a session with Rob Arnott, who the Wall Street Journal labeled the “godfather of smart beta,” on the topic, “My Favorite Money-Making Strategy, and Investments to Avoid.” He warned against load funds, annuities, hedge funds and private equity, but liked my strategy of investing in quality companies that pay high and growing dividends. He and Cliff Asness wrote an academic paper entitled, “Surprise! Higher Dividends = Higher Earnings Growth.”

Arnott agreed with Rogers that the stock market is no bargain. In fact, we are within a year of enjoying a record — the longest bull market in history!

As the market crawls higher, some might be tempted to make fun of the Bears for continuing to bet against the stock market. For men like Jim Rogers though, it only adds more seriousness to their warning of a coming downturn.

Meanwhile, higher markets mean higher profits for those who are invested, and subscribers of my Forecasts & Strategies newsletter have taken full advantage of the opportunity by being fully invested all year.

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