Jim Rogers: Brexit Blowback "Worse Than Any Bear Market You've Ever Seen"

Tyler Durden's picture

When it comes to being direct and offering up some truth, one can rest assured that Jim Rogers is a prime candidate to do both.

In an interview with Yahoo! Finance, the legendary investor had some candid and quite unnerving things to say about the global market in the aftermath of Brexit.

"This is going to be worse than any bear market that you've seen in your lifetime. 2008 was pretty bad because of debt, well the debt all over the world is much, much higher now. Stocks in the US for instance have been going sideways for 18 months, 24 months. That's called distribution by many people, so when you have distribution for a year and a half, it usually leads to bad things."

If that was too upbeat, Rogers unveils his bear scenario:

"The bear scenario, the bad scenario is that Scotland now leaves and takes the oil money, the city of London gets whacked by Europe, they lose a lot of income. The UK already has huge international debts, and it has balance of trade problems, budget problems, so the bear case is the pound disappears and England becomes Spain, or Poland, or Italy or something."


"It won't happen anytime soon but the deterioration will continue, it makes stocks go down a lot. Remember, stock markets are anticipating the future, they see that happening it will now lead to many other separatist moments in the EU. This is going to encourage a lot of separatist movement, I'm not saying it's good or bad I'm just telling you what's going to happen, or what the bear case is, that if all that happens we all should be very worried."

Regarding where EU will be five years from now, Rogers doesn't believe it will even exist:

"The EU as we know it now will not exist, the Euro as we know it will not exist."

On how to play this market now,

"I'll tell you what I'm doing, people have to make their own decisions, going into this I'm long the US Dollar, I'm short US stocks, I own some Chinese shares, I own agriculture around the world. These are things that might do well no matter what happens going forward. These are going to be perilous times, I hope I get it right."

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Supernova Born's picture

The Scots had their chance to leave the UK but simply didn't have the guts.

Time to STFU, Nicola. Scotland is 8% of the population of the UK and that 8% doesn't have a right to veto a national referendum.

The following was an honest Scottish self-assessment BEFORE they voted down their own independence.


Lonesome Crow's picture

Distribution to whom? At negative rates?

Cannot the Balkanization of Authority be the biggest boon business has ever seen?

Chris Dakota's picture
Chris Dakota (not verified) Lonesome Crow Jun 27, 2016 7:40 PM

Trump said a few months ago
"we are in a huge bubble now, I hope it crashes before I am President or they will blame me"

Lonesome Crow's picture

Blame comes from opinion,

Justice from facts.

Keyser's picture

And as we have seen, facts mean nothing to the US DOJ... Nothing to see here, move along... 

Lonesome Crow's picture

They may have a department, but that is not justice they wield.

Again, just this, justice comes from the facts.

johngaltfla's picture

Jim is so much fun to watch. He gets the gold bulls hopes up, it sells off, and those of us who have watched him for years know he's setting up a majory buying opportunity.

Oh, and buy more ammo.

jeff montanye's picture

i think trump is getting his wish.  the bear will start in earnest on obama's watch as last time it was on bush's watch, and the time before on clinton's (not quite as clear, but it did).

as michael hudson said, it will serve to illuminate the economic allegiances of obama and clinton. “I expect Obama to do whatever he is told to do by Wall Street,” Hudson said. “He has turned over management of the economy to his campaign contributors from Goldman Sachs and Chase Manhattan. He does not have views of his own, other than self-promotion." (quoted by jesse).

Save_America1st's picture

all of us originals in Fight Club have been on the leading edge of telling everyone on here and in our personal lives what we know about this for many years now that this shit was all coming to a collapse.  Prepare...prepare....prepare.  Stock up on all essential supplies.  Food stocks, water filtration, ammo, guns, camping/fishing/hunting gear...silver phyzz first and then gold phyzz.  Been saying this over and over.

Can't even describe how many people I've presonally tried to wake up who totally refuse because of their Normalcy Bias.  At the same time so many people I have continued to inform have eventually found the path and seen the light...finally...after many years.  So I feel good about that.

For the newbies who don't know this...well that's how it's been.  ZH has been on the leading edge of the fight again the globalist scum since 2009.  Infowars.com has been way ahead of that since over 20 years now.  Welcome to Fight Club.

Keep stackin'.  This is the end game, bitchez.  Prepare accordingly. 

Blue Boat's picture

Ya, good for you for having the energy to keep drilling people about eventual realities. At least some of them woke up.

BUT, we must also acknowledge that anyone who bought hook, line and sinker into the ZH mantra since 2009 (thumbs down to stocks and thumbs up to metals) missed a monster bull market in stocks!  Those who bailed totally out of the market were not too smart.

And plenty who bought gold at $1500+ haven't been happy in awhile.

So, any newbie on here --- don't believe everything you read......here or anywhere.

Déjà view's picture

Ya Jim...I know English finances are subprime...I have made posts alluding to that fact these past few days...rest will have to wait and see.

Btw...there are more subprime nations if one cares to look them up on CIA World Fact Book under CURRENT ACCOUNT BALANCE...

Tell me something new e.g. NATO breakup, Russian sanctions lifted, Nigel as PM,  Merkel out AFD in...ANYTHING?

Sucker Born Every Mknute...truer than ever...most of them sleep walkers know Kardashians weight...what a bunch...

All Risk No Reward's picture

Distribution to pension funds and any other unguarded "pools" of money.

Where else?

mc225's picture

lonesome crow was tight, man. 16-year old michael schenker. one of those 'if you were stranded on a desert island and could only pick x' type of albums.

css1971's picture

I sent that to all my friends and relatives when the independence result came in. The Scots can go fuck themselves.


Country of sheep.

Ghordius's picture

interesting... and very partisan

in one corner, Scotland, aspiring to break loose from a national union, which means own taxes, own treasury, own debt, own army, etc.

in the other corner England/the UK, breaking loose from a regulatory & trade alliance with other sovereigns. one that fits and is very handy for many small sovereign countries, note

and yet, somehow nearly all the cheers here are about the second, while those who aspire to the first are told "they can go fuck themselves"

Chris Dakota's picture
Chris Dakota (not verified) Supernova Born Jun 27, 2016 7:22 PM

Bye Jews

SheepDog-One's picture

'The trouble with Scotland is,mits full of SCOTS!'

EuroPox's picture

Meh!  The Fed just pushes it all back up again - can't let things go to shit now, they have to help Crooked Hillary...

Storm in a teacup!

jeff montanye's picture

central banks are not omnipotent.

they had a good run from 2009 based on allowing accounting to lie (mark to model).

that is coming to an end.

r3phl0x's picture

I wish, but Nope. There are literally billions of people still willing to exchange real goods & services for the US dollar.

Until almost all faith in the currency in lost, central banks have incredible power.

CPR Steps_30 pumps_2 breaths_then repeat's picture

Got my Bear portfolio set (unleveraged): 

  • - ProShares Short S&P500 ETF (SH) 
  • - ProShares Short QQQ ETF (PSQ) 
  • - Global X Silver Miners ETF (SIL)
  • - VanEck Vectors Gold Miners ETF (GDX) 
  • - QuantShares US Market Neutral Anti-Beta ETF (BTAL) 
  • - CurrencyShares Japanese Yen ETF (FXY)
  • - iShares 20+ Year Treasury Bond ETF (TLT) 
malek's picture

Why do you point out being unleveraged, if it's guaranteed to be almost entirely derivative-based?

cdevidal's picture

PMs; because, if you don't hold it, you don't own it

Supernova Born's picture

Gold: So easy, a barbarian could do it.

Caledonian's picture

So easy a troglodyte could do it.

BC6's picture

barbarous relic for a barbarian. And the barbarians are at the gate.

PTR's picture

I want to melt down all the gold in the world and give Charlie Munger and Warent Buffet a golden crown, ala Game of Thrones style.

worbsid's picture

OT:  A knight is standing before the King with a smoldering money chest.  The King says, "How many times do I have to tell you, it's pillage and then burn"  

jeff montanye's picture

not necessarily ot.  imo many financial institutions left money in britain too long and took a big hit on brexi, especially via the pound.  their pillaged billions got more than a little burnt by their complacent assurance this would be a replay of scottish indedpendence or the sanders campaign or some such.

Clashfan's picture

We shall see. My bet, sadly, is that the current oligarchy continues in its current form (or something very similar) for quite a while.

Many are waking, true; in the end, though, many are still thoroughly brainwashed. And there's the whole third world.


TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) malek Jun 27, 2016 7:12 PM

Becasue the levered ETFs were really designed for day trading not holding overnight so if you "invest" in those you usually get raped even when the market moves your way.  You are better off buying unlevered short ETFs or shorting long ETFs (if your account allows you to).  You can look it up online why the levered ETFs are bullshit, its pretty common knowledge.

malek's picture

And unlevered short ETFs use only, or at least mostly, Short Selling of actual stock and Options to achieve their goal?

(As you might imagine, that's a tongue in cheek question.)
Because otherwise the unlevered ETFs have the same problems, just in smaller scale.

jeff montanye's picture

you might consider actually buying the common shares of first majestic silver or coeur d'alene mines.  

i know; it just seems too easy and inexpensive.

All Risk No Reward's picture

Silver was, what, $8 per ounce at the bottom of the last meltdown? I remember that Starbucks shares were about the same at the time, or a split adjusted $4 per share.

Folks, the dElites don't give a flying F* about you. They despise you. They will enjoy bankrupting almost everyone and stealing everyone's chit. This is the Great Game being played on the Grand Chessboard and the victims have no idea what lies ahead.

Deflationary bust to rip Muppet assets and faces... possibly followed by a hyperinflation after it won't matter to the impoverished masses.

What they won't do is bail out the masses of the criminally fraudulent debt they duped the masses into taking.

Sheeeeyit, people, think through the strategy instead of parroting the Debt-Money Monopolist controlled opposition "party line."

American Psycho's picture

Looks about right.  Don't forget your Triple inverse Gartman.

DumpsterFire's picture

Why no SDOW (ProShares UltraPro Short Dow30)?  Go ugly early. 

Zip_the_Zap's picture

Thank you, something constructive to work with.

Peak Finance's picture

Close to mine but really dude can't hurt to buy some close to the money longs as a hedge just in case.

r3phl0x's picture

I was with you until the last 2 - those are toxic assets.

trader1's picture

you are missing AdvisorShares Ranger Equity Bear ETF (NYSE Arca:HDGE)

N0TaREALmerican's picture
N0TaREALmerican (not verified) Jun 27, 2016 6:21 PM


Bah.   It'll all blow-over by July 4th.   Some fireworks,  slow-motion flags,  military flybys,  maybe a slow-motion eagle spotting, and the Mericans will be right back to their pathologically optimistic patriotic dumbass selves. 

dark pools of soros's picture

nah - Patriotic is being labled as Racism these days..  Progressives will probably denouce that holiday in a couple years if Hillary gets in