Tags: rogers | 2013 | bad | 2014 | worse

Jim Rogers: 2013 to Be Bad, 'God Knows What Will Happen in 2014'

Tuesday, 15 May 2012 07:05 AM

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If investors think 2012 isn't going their way, they need to brace for a bumpy ride, international investor Jim Rogers says.

The global economy and markets are set to dive in 2013 and get worse in 2014 before getting better, says Rogers.

Election-year politics and loose monetary policies will keep the economy afloat this year, but get ready for a sell-off. "2013 will be very bad. God knows what will happen in 2014," Rogers told Fox Business Network.

Editor's Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.

"I own no American equities," Rogers separately told CNBC. "I'm mainly short stocks around the world because I don't expect the world economy to be very good in the next couple of years. In fact, 2013 is probably going to be a huge mess and 2014 is going to be a real mess."


The U.S. tends to see recessions every four to six years and considering the country just emerged from the last one in 2009, it's time for a new contraction.

"In America, we've had recessions every four to six years since the beginning of the Republic. Next year is four to six years," he said.

Some analysts say stocks will turn south as soon as this summer.

In 2011, the Dow Jones Industrial Average was up 11 percent by the end of April, but plummeted 16 percent from that level by August.

The Standard & Poor’s 500 Index and the Nasdaq Composite Index also rose in April and then fell by August as well.

Today, the Dow is up almost 6 percent, the S&P 500 up over 8 percent, and the Nasdaq up 13 percent this year, MarketWatch reports.

Analysts tell MarketWatch that healthy corporate earnings, improving U.S. economic indicators and recent calm in Europe may be due for a change, and investors should consider going defensive in stocks

"Utilities, telecom and consumer staples are where you want to be if you have to be [in equities]," says John Canally, investment strategist and economist at LPL Financial, who also suggests being in cash or mortgage-backed bonds, MarketWatch reports.

Others agree that high-quality, large-cap companies are a safe play.

"The summer’s not only seasonally weak, but that’s especially true for small company stocks because of illiquidity, money is drawn from the markets and people shy from the riskier stocks," says Mark Luschini, chief investment strategist at Janney Montgomery Scott, MarketWatch adds.

Editor's Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.



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