Jim Rogers Dumps All American Stocks Amid Market Euphoria

Renowned investor Jim Rogers, at 82 years old, recently issued a stark warning during a podcast interview, stating that he had sold all of his American stocks. Rogers, known for his prescient market calls, expressed concern over the current state of global markets, which he described as being in an unprecedented state of euphoria. He cautioned that a crisis could be imminent, given the numerous market bubbles he has witnessed over the years.

Rogers' decision to liquidate his American stock holdings comes at a time when the Nasdaq index has seen a significant rebound of over 10% since April. Despite this positive trend, Rogers remains pessimistic about the future of the U.S. stock market. His actions echo those of Michael Burry, the investor portrayed in the film "The Big Short," who also significantly reduced his stock holdings in the first quarter of this year.

Rogers, who co-founded the Quantum Fund with George Soros, is one of the most visionary international investors. He was also one of the earliest foreign investors to make significant bets on the Chinese market. Currently, Rogers holds almost entirely cash, with the exception of some investments in China and Uzbekistan. He believes that global inflation is far from over and that higher interest rates are likely to follow, particularly in major economies. He predicts that the yield on 10-year U.S. Treasury bonds could rise above 5% in the future.

Michael Burry, another prominent investor, had almost completely liquidated his stock portfolio by the end of the first quarter of this year. Burry, known for accurately predicting the 2008 housing market collapse, now holds a small position in the cosmetics giant Estee Lauder and has taken a bearish stance on stocks like Nvidia through options trading. His investment portfolio reflects a strategic adjustment in response to the increasing uncertainty in the market environment.

Despite the recent rebound in the U.S. stock market, some investors remain cautious about the future. Rogers' warning highlights the potential risks in the current market conditions, which he believes are unsustainable. His decision to hold large amounts of cash and avoid American stocks underscores his belief that the market is in a state of euphoria that could lead to a crisis. As investors navigate these uncertain times, Rogers' insights offer a valuable perspective on the potential challenges ahead.