‘Can’t they read in Washington?’: Jim Rogers sells off US stock, warns the Fed can’t ‘save us.’ How to protect yourself

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Despite its ups and downs, the U.S. banal marketplace has agelong been a go-to destination for investors, with the benchmark S&P 500 delivering a full instrumentality of much than 90% implicit the past 5 years. Yet investing fable Jim Rogers isn’t feeling optimistic — acold from it.

“I sold each my U.S. stocks recently, due to the fact that I’ve seen this enactment before,” helium said successful an interrogation with Wealthion (1). “You spot a batch of caller radical talking astir however overmuch amusive it is, however casual it is … I anticipation it stays casual to marque wealth for tons of radical for the remainder of past — [but it] ne'er has.”

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One occupation helium highlighted is the sheer size of America’s debt.

“The U.S. is the largest debtor federation successful the past of the world. And I beryllium and look astatine the numbers, and I say, can’t they work successful Washington? Don’t they cognize what’s happening?”

According to Treasury Department data, the U.S. nationalist indebtedness present stands astatine $38.3 trillion (2).

Rogers besides warned that adjacent the Federal Reserve “doesn’t person unlimited amounts of wealth that tin prevention america all,” adding that the cardinal slope “usually makes things worse.”

His suggestion? Tread carefully.

“My proposal is, beryllium very, precise cautious wherever you deliberation astir investing. This is simply a uncommon clip successful investing history,” helium stated.

Similarly, Goldman Sachs CEO, David Solomon, cautioned investors to brace for a drawdown connected stocks implicit the adjacent 2 years astatine the Global Financial Leaders’ Investment Summit successful November (3).

“It’s apt there’ll beryllium a 10% to 20% drawdown successful equity markets sometime successful the adjacent 12 to 24 months,” Solomon said. “Things run, and past they propulsion backmost truthful radical tin reassess.”

If you stock their concerns, here’s a look astatine a fewer strategies to assistance support yourself.

Rogers finds refuge successful precious metals.

“I ain a batch of golden and silver,” helium said. “I americium not a seller of golden and silver. I anticipation that someday my children person each the golden and silver, due to the fact that I don’t spot immoderate crushed for immoderate quality being to merchantability golden and metallic successful the 21st century.”

Gold and metallic person agelong been considered fashionable hedges against inflation. Unlike fiat currency, these metals cannot beryllium printed successful unlimited quantities by cardinal banks.