"It is only a matter of time before the US stock market runs into devastating problems due to the Fed QE program", Jim Rogers warned during an interview on CNBC Singapore, adding that the prevalance of similar stimulative pograms around the world merely exacerbates the probability and size of a fall. His simple message to US investors - "Be Careful."
On US Equities:
"We may well have had a big, big rally in the U.S. stock market, but it's not based on reality. I would encourage investors to know you're in a fool's paradise, be careful, and when people start singing praises, say, 'I've been to this party before, and I know know it's time to leave.'"
On A US Recession:
"First of all, throughout American history, we've always had slowdowns every four to six years. That means that sometime in the next couple of years - three years, maximum - we are going to have problems again, caused by whatever reason,"
On The Increasing Size Of The Problems:
"For instance, there was 2001 and 2002, and then 2007 and 2009 was much worse.
Well, the next time it's going to be worse still, because the level of debt is so, so, so much higher. Every country is increasing its debt at the same time."
On The Limits Of Central Banks:
"This is the first time in recorded history that we have every major central bank in the world printing money, so the world is floating on an artificial sea of liquidity.
Well, the artificial sea is going to disappear someday, and when it does, the catastrophe will be even worse. Yes, it's coming,"