Jim Rogers Warns US Stock Investors "Be Careful... You're In A Fool's Paradise"

Tyler Durden's picture




 

"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,"

 

Source: CNBC

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Thu, 10/03/2013 - 17:06 | 4020304 Xibalba
Xibalba's picture

ZH citing Cnbc as a source.  The world really is backwards.

Thu, 10/03/2013 - 17:09 | 4020324 Pooper Popper
Pooper Popper's picture

AAHHHHHHHHH!

A 50 ft Marsmellow man!!

Thu, 10/03/2013 - 17:21 | 4020372 Mi Naem
Mi Naem's picture

"A 50 ft Marsmellow man!?!" 

I'll bet he scares the crap out of the Pillsbury Doughboy. 

Thu, 10/03/2013 - 18:47 | 4020694 Jack Napier
Jack Napier's picture

This is newsworthy? Oh wait, it's on the MSM. I guess that is a shocker.

Thu, 10/03/2013 - 20:01 | 4020952 Supernova Born
Supernova Born's picture

A fool and his paradise are soon rehypothecated.

Thu, 10/03/2013 - 21:33 | 4021179 old naughty
old naughty's picture

"Well, the artificial sea is going to disappear someday, and when it does, the catastrophe will be even worse. Yes, it's coming,"

 

So because  you don't see a taper, you don't expect a 'hard landing' (sea sucked out slowly and we land hard on bottom),

instead, you now expect a whirlpool quickening ...

But you say it's going to...When?

And you did not say when we should come back, you did. 

Thu, 10/03/2013 - 20:51 | 4021087 moonshadow
moonshadow's picture

you need to spell it pillsberry doeboy to exist in the same reality as the 'marsmellow' man

Thu, 10/03/2013 - 22:14 | 4021243 Bernankenstein
Bernankenstein's picture

Who you gonna call? DEBTBUSTERS!!!

Thu, 10/03/2013 - 17:23 | 4020390 Eisenhorn
Eisenhorn's picture

Tell'em about the twinkie.....

Thu, 10/03/2013 - 17:39 | 4020445 Uber Vandal
Uber Vandal's picture

I had a very, very, VERY bad mental image of how the twinkie came to be thanks to you!!

Thu, 10/03/2013 - 17:04 | 4020305 Screwball
Screwball's picture

Source CNBC?  The irony.

Thu, 10/03/2013 - 17:06 | 4020306 TeamDepends
TeamDepends's picture

Mr. Rogers does not want to be your neighbor.

Thu, 10/03/2013 - 20:17 | 4021006 SAT 800
SAT 800's picture

I already have a Mr. Rogers in my neighborhood; he just bought a 455,000$ Maserati; and he has safe deposit boxes stuffed full of silver bullion; one is enough; thanks; he's insufferable.

Thu, 10/03/2013 - 21:28 | 4021169 Freewheelin Franklin
Freewheelin Franklin's picture

I think Mr Rogers lives in Singapore and is making sure his grandchildren learn Mandarin.

Thu, 10/03/2013 - 17:05 | 4020310 DoChenRollingBearing
DoChenRollingBearing's picture

Our problems are getting worse not better.  Jim Rogers is right.  The House of Cards could come down in any number of ways.  

Prepare.  Everyone should own some gold, yet only 1% - 3% of Americans do...

Thu, 10/03/2013 - 17:10 | 4020329 Grande Tetons
Grande Tetons's picture

Your statistics work in your favor. No point trying to increase competition. 

Hold a percentage of gold depending on the need for personal insurance and sleep like a baby. 

Thu, 10/03/2013 - 18:03 | 4020518 RaceToTheBottom
RaceToTheBottom's picture

Is it still just insurance?

Thu, 10/03/2013 - 20:42 | 4021073 Keyser
Keyser's picture

It's about wealth preservation. You don't want paper assets when the fiat goes pop and PMs are a good place to park $$$ to counter inflation and currency devaluation. 

 

Thu, 10/03/2013 - 20:58 | 4021102 Jam Akin
Jam Akin's picture

I'll keep repeating the mantra:  "Sell paper.  Buy physical.  Sleep well."

Thu, 10/03/2013 - 17:37 | 4020446 Jani
Jani's picture

Gonna blow soon.

Standing in line at the post office today I heard an elderly women discuss her FB, Apple stocks with a 30 something clerk.

Stawks are gonna seriously tumble --- soon.

Thu, 10/03/2013 - 20:11 | 4020981 chump666
chump666's picture

"In the winter of 1928, Joe Kennedy decided to stop to have his shoes shined before he started his day's work at the office. When the boy finished, he offered Kennedy a stock tip: "Buy Hindenburg." Kennedy soon sold off his stocks, thinking: ”You know it's time to sell when shoeshine boys give you stock tips. This bull market is over."   A timely move considering that the stock market would soon resemble the fate of the airship Hindenburg itself.

Of course there is the age old. "When hookers start giving stock tips" etc etc etc

But these days we have a crowded fund manager market. 

So yes, it will be delicious when this blows.

Just keep a eye on goverments confiscating the crumbs in pension funds and other countries rip assets from each other.

 

Thu, 10/03/2013 - 21:12 | 4021121 Zer0head
Zer0head's picture

yesterday's shoeshine boy

is today's tweet

 

You know it's time to sell when the twitter boyze  give you stock tips. This bull market is over."

 

e.g. when Carl luxuriates in his 27 room $100m 53rd St. penthouse (atop the Museum tower) and has his butler types 40 characters and in doing so make $1billion

something is very very sick

 

 

 

 

Thu, 10/03/2013 - 18:12 | 4020550 seek
seek's picture

I've covered the bottom of many a lake in gold, and I'm an advocate as is well established.

However, lately I am more and more convinced that for quite some time when this hits gold will be close to worthless, because no one is going to have anything to buy it will. All fiat will be worthless, so 97%+ of Americans won't be in a position to buy anything other than exchanging other assets they have for it -- and they're going to have so little, and need what they already have so much, they won't be parting with any of those assets. So even our beloved phyzz becomes incredibly illiquid.

Increasingly I think having some sort of well concealed, buried or what have you, cache of food and power (solar and a sizable stash of fuels) is probably the better short-term investment. I have to think having a few hundred gallons of gasoline that no one knows about would easily be worth more than any quanitity of gold for at least 2-3 months following the "event."

It's hard not to get despondent when you realize how bad this is going to be. Don't forget the US ended the strategic grain reserve, so there's no real food storage for the entire country now outside what you have on hand and a few mormon facilities.

Thu, 10/03/2013 - 19:51 | 4020931 DOT
DOT's picture

Face value sacks of junk silver dime might be a good holding. Easy to exchange for the moderate valued daily expenses.

Thu, 10/03/2013 - 20:15 | 4020990 SAT 800
SAT 800's picture

It always amazes me that both 90%Silver Dimes and Quarters are still available from major coin dealers; they are so obviously desirable; it's amazing they aren't already all gone.

Thu, 10/03/2013 - 20:34 | 4021051 BeerBrewer09
BeerBrewer09's picture

Agreed. I can't believe they are still around at these prices.

Thu, 10/03/2013 - 20:18 | 4021013 spine001
spine001's picture

If we get to that situation, and I sincerily hope not, the only sustainable investment you can make now is in productive skills, like farming, and productive assets, like cattle, or land or any other productive asset.

Thu, 10/03/2013 - 20:05 | 4020960 Tinky
Tinky's picture

I agree with your basic premise, i.e. that self-sufficiency is more valuable than any other "asset". However, your concerns, while reasonably considered, are much more difficult to parse out.

The pivotal, related question, to my mind, is how quickly the system will break down, and how far out the markets anticipate such a breakdown. My own view is that it is likely that PMs will appreciate markedly before the final collapse, and that there will, therefore, be a window within which agile holders of PMs will be able to trade them for other valuable hard assets.

Your scenario, which should be considered, rests on the premise that the collapse will catch everyone (and the markets) by surprise, and that the resulting chaos will render even PMs temporarily worthless. I doubt that will happen.

I would also add that there will be a lot of hot money seeking safe haven, and by default gold will look awfully attractive if/when the paper markets collapse.

Thu, 10/03/2013 - 20:25 | 4021027 TrustWho
TrustWho's picture

The government already has plans.....MATIAL LAW. How they will handle agricultural production will be interesting. I hope USA will create collective farms and forced labor, but mass hungy stomachs create suicde bombers and mass chaos in any culture. Your happiness index will be highly correlated to your ability to produce something of value for local community and the strength of your local community of family, friends. For women, you will need a strong man, but nature gives them a great asset tu use and will be abused. 

Thu, 10/03/2013 - 20:16 | 4021002 luckylogger
luckylogger's picture

Not sure gasoline would be worth anything, they put so much ethanol in it that it rots in 2 months and then you got to pump it out and burn it in a brush p[ile or something. Maybe deisel would keep?

Thu, 10/03/2013 - 18:12 | 4020560 Living The Dream
Living The Dream's picture

Forget gold.  I'm stocking up on lead.

Then I can get as much gold as I want.

Thu, 10/03/2013 - 18:36 | 4020638 Freddie
Freddie's picture

I want plenty of lead and a Tesla S assault car with flames and fire.

Thu, 10/03/2013 - 20:03 | 4020964 Supernova Born
Supernova Born's picture

You can't eat gold, but you can eat the looters who attempt to steal your gold.

Thu, 10/03/2013 - 20:04 | 4020965 Supernova Born
Supernova Born's picture

guess I'm hungry, double post

Thu, 10/03/2013 - 20:16 | 4020993 Tegrat
Tegrat's picture

"Forget gold.  I'm stocking up on lead.

Then I can get as much gold as I want."

 

You obviously havent thought about this much because when things get bad anyone with a gun will be looking for looters and shooting on site - you will be traveling to obtain what you think you will get. You will be tired. possibly hungry, unfamiliar with the neighborhooods unlike the armed residences and you will be putting yourself at risk by others with the same idea. Only an idiot would think they can go around looting without being shot by the owners of their targets.

 

 

Thu, 10/03/2013 - 21:51 | 4021200 Reckonball
Reckonball's picture

Yes,life will get ugly for Urbanites...first..

Thu, 10/03/2013 - 22:05 | 4021227 TheMeatTrapper
TheMeatTrapper's picture

Forget gold.  I'm stocking up on lead.

Then I can get as much gold as I want.

 

People try that after hurricanes down here. It doesn't really work that well. 

Thu, 10/03/2013 - 20:12 | 4020986 SAT 800
SAT 800's picture

Gold is very interesting to various power mad control freaks, like central banks and national governments. Wouldn't it be better to own Silver; which will "suffer" the same appreciation "in the event"; but be much easier to deal with and in; without becoming an annoyance to the powers?

Thu, 10/03/2013 - 20:54 | 4021095 hairball48
hairball48's picture

I'm a 1%er? Wow. I feel rich!

 

:)

Thu, 10/03/2013 - 21:09 | 4021127 Antifaschistische
Antifaschistische's picture

If every single investor put in a stop loss at 2% below current market, then everyone would be saved.  :)

This may get fun!!!

Thu, 10/03/2013 - 17:06 | 4020312 Pooper Popper
Pooper Popper's picture

Everybody all together-"Were on the Highway to hell

No stop signs, speed limits

"              "

Thu, 10/03/2013 - 17:07 | 4020318 Sofa King Confused
Sofa King Confused's picture

Blow it up already.......I'm tired of waiting.

Thu, 10/03/2013 - 18:04 | 4020520 Kirk2NCC1701
Kirk2NCC1701's picture

Which is why the Debt Ceiling MUST be RAISED*.  As high as possible and as fast as possible.  If it can't be reversed, it needs to be accelerated.  Why?  To stop the scumbag Elite looting (trading bits of paper/confetti for real assets), by getting to The End ASAP.

Yet most ZHers don't seem to get this, as it goes against their conditioned sense of (fiscal) values.  Their conditioning is short-circuiting their logic, creating a blind spot in an otherwise rational landscape.

* Ironically 0'Bummer is only accelerating D-Day with his desire for moar spending.

Thu, 10/03/2013 - 17:11 | 4020328 fooshorter
fooshorter's picture

CNBC Singapore, Less lying with funnier accents... also singapore sling

Thu, 10/03/2013 - 17:19 | 4020353 Blazed
Blazed's picture

@fooshorter,

A Raffles original.

Thu, 10/03/2013 - 18:40 | 4020658 Hongcha
Hongcha's picture

They run you $22 at Raffles. 

Thu, 10/03/2013 - 17:19 | 4020366 rtalcott
rtalcott's picture

Bernie Lo has a good sense of humor

http://www.cnbc.com/id/35728715

Thu, 10/03/2013 - 17:11 | 4020331 McMolotov
McMolotov's picture

"Been spending most our lives, living in the banksta's paradise."

Thu, 10/03/2013 - 17:24 | 4020387 DoChenRollingBearing
DoChenRollingBearing's picture

Similar song, "Al Gore Paradise" (Shanklin parody song) is hard to find...  I had to use Bing, Chrome couldn't locate it...

Thu, 10/03/2013 - 21:35 | 4021178 Harbanger
Harbanger's picture

http://grooveshark.com/#!/s/Al+Gore+Paradise/4brJOM?src=5

Sorry, the link won't paste but it's on grooveshark.

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