Jim Rogers knows a thing or two about markets. He is a successful investor and businessman (and was a co-founder of the Quantum Funds).
He recently talked about his expectations for the next couple of years. It's worth watching.
Jim predicts a crash within the next year (due to the bubble on many stocks popping).
There are many things that could be the catalyst for the fall, but he predicts it will be not only the worst in your lifetime, but also in his lifetime (and he's pretty old!).
Blodget: Can anybody rescue us?
Rogers: They will try. What’s going to happen is they’re going to raise interest rates some more. Then when things start going really bad, people are going to call and say, "You must save me. It’s Western civilization. It’s going to collapse." And the Fed, who is made up of bureaucrats and politicians, will say, "Well, we better do something." And they’ll try, but it won’t work. It’ll cause some rallies, but it won’t work this time.
Blodget: And we are in a situation where Western civilization already seems to be possibly collapsing, even with the market going up all the time. Often when you do have a financial calamity, you get huge turmoil in the political system. What happens politically if that happens?
Rogers: Well, that’s why I moved to Asia. My children speak Mandarin because of what’s coming.
You’re going to see governments fail. You’re going to see countries fail, this time around. Iceland failed last time. Other countries fail. You’re going to see more of that.
You’re going to see parties disappear. You’re going to see institutions that have been around for a long time — Lehman Brothers had been around over 150 years. Gone. Not even a memory for most people. You’re going to see a lot more of that next around, whether it’s museums or hospitals or universities or financial firms.
What do you think is going to happen?
If our current actions are leading us towards a crash, what will stop it?
How will Algo trading help or hurt the outcome for the masses (and the few)?