Jim Rogers: 'Catastrophe' Coming, Thanks to Central Banks

Thursday, 03 Oct 2013 05:25 PM

By Dan Weil

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Aggressive easing programs by central banks around the world will create a financial catastrophe, says legendary investor Jim Rogers, chairman of Rogers Holdings.

"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," Rogers told CNBC.com.

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

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

And what about the timing?

"If I was smart enough to tell you when it's going to happen, I would get rich," Rogers said.

He says there's no reason to sell stocks now. "I'm not buying U.S. shares at the moment, but I'm not shorting either, because I am concerned this may turn into a huge bubble. So I'm sitting and watching," Rogers said.

Still, with the U.S. representing the biggest debtor nation in history, there's no fundamental justification for rising stock prices, he says.

"We may well have a big rally in the U.S. stock market, but it's not based on reality," Rogers said.

Some investors are exiting U.S. stocks amid concern about the government shutdown. The Standard & Poor's 500 Index dropped 2.7 percent from Sept. 18 through Thursday.

"I think people are starting to raise an eyebrow finally,” Joseph Saluzzi, co-head of equity trading at Themis Trading, told Bloomberg. “The longer this goes on, people get a little more nervous. And when people get nervous, they sell first and ask questions later.”

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

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