Jim Rogers says the next bear market will be ‘the worst in our lifetime’
He wouldn’t go so far as to say this was the start of a bear market, which is typically defined as a drop of 20% or more from a significant peak. Furthermore, he expects the current stock-market rout to continue. He cautioned that “debt is everywhere. Furthermore, it’s much, much higher now.”
On Thursday, the S&P 500 SPX+1.49% and Dow Jones Industrial Average DJIA+1.38% officially entered correction territory. In addition, both indexes are down more than 10% from recent highs.
Now 75, Rogers founded the Quantum Fund in 1973 with George Soros. The hedge fund famously gained 4,200% by 1980. This compared very favorably to the S&P 500’s 47% return. Rogers has seen his share of bear markets. They included the crash of 1987 (a 36% decline), the bursting of the dot-com bubble of 2000-’02 (a 38% drop) and the Great Recession of 2007-’09 (a 54% fall).