Although Rogers could not give a timeline for the bear market to arrive, he did say that it will be the “worst in my lifetime,” a prediction he’s stuck by for a while now, and the key to spotting a market correction lies within smaller markets.
ow do you view US stock markets currently?
I am not investing in US stock market because I expect problems to come in the next year or two. I am not buying shares.
In the US market, some of the stocks like Apple and Google go up every day. They never go down, which is a dangerous sign in any stock markets. When you have a few stocks always going up and the movement has been concentrated and that seems to be what is happening in the US stock market.
Any timeline, any horizon that you have for this bear market that you are foreseeing?
No, 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. 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.
In 2007, Iceland went bankrupt but nobody noticed or cared. Then Ireland went bankrupt. Then a few weeks later, Bear Sterns went bankrupt and a few weeks later Northern Rock, the English Bank, went bankrupt. Then eventually Lehman brothers went bankrupt and by then, everybody knew there was a problem. But it had been there for over a year and it has always worked that way. It starts when we are not watching. It has already started. Latvia collapsed. Argentina, Venezuela, Turkey, some banks in India are having problems, Indonesia has started having problems. It has not made to evening news yet.
All these markets are small but until they make it to the big markets, people do not notice.
- Source, Money and Markets, read more here
