“America and the world is long overdue for a problem,” renowned American investor
Jim Rogers
has reportedly said. Rogers has expressed his concerns about the impending market collapse, stating that he is holding a significant amount of cash in anticipation of the worst sell-off in his lifetime. Rogers attributes this potential crisis to the substantial increase in debt levels worldwide.
“America and the world is long overdue for a problem.
The reason I have a lot of cash is because I expect the next sell-off to be the worst in my lifetime, because the debt has gone up very much everywhere. Even India has debt now. So, you should be worried. I am worried. I am waiting for this collapse to come because I know it is going to be very-very bad. Maybe it is here. I do not know.” Rogers told ET Now.
According to an ET report, when questioned about whether investors should consider increasing their
cash holdings
, Rogers affirmed his desire to have more cash in his portfolio.
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He emphasized that the prolonged period of prosperity and widespread profitability is a cause for concern, as historically, such periods have often preceded market downturns. If compelled to invest, Rogers indicated a preference for
silver
.
“Things have been so good everywhere for so long. Always in history, when everybody is making a lot of money, it is a time to worry. So, I am worried,” he was quoted as saying.
Recent reports have highlighted that Warren Buffett’s
Berkshire Hathaway
has amassed a cash reserve of nearly $277 billion, primarily due to the sale of approximately half of its stake in Apple. This marks the seventh consecutive quarter in which Berkshire has sold more stocks than it has purchased.
The global market has been shaken by recessionary fears in the United States, triggered by disappointing employment data and the unwinding of carry trades following the rapid appreciation of the yen.
Hemant Mishr, Co-Founder & CIO of S CUBE Capital, warns that the geopolitical tensions in the Middle East may further exacerbate the situation, potentially impacting all risk assets, including emerging markets, unless central banks intervene to prevent a market rout.
While Indian markets remain fundamentally strong, Mishr cautions that they will not be immune to the effects of investors seeking to offset their global losses by realizing profits.
