The Next Bear Market Will Be “The Worst Of My Life” – Here Are 3 Keys To Surviving It
Famous investor Jim Rogers has seen quite a few bear markets over the past half-century, but he’s worried the biggest to date may be just around the corner.
“The next bear market will be the worst of my life,” he predicted in an interview with financial advisory firm Wealthion last month.
Granted, Rogers has been bearish in the US stock market for years. But the multimillionaire knows a thing or two about making money in times of turmoil.
Rogers co-founded the Quantum Fund with George Soros in 1973, in the midst of a devastating bear market. From then until 1980, the portfolio returned 4,200% while the S&P 500 rose by 47%.
Here are three assets he recommends keeping in your wallet to deal with an upcoming crash – even if you’re just sprinkling some of it. your spare currency on them.
Rogers has long been a fan of commodities, and silver is one of his favorites.
“The all-time high for silver is $ 50 an ounce; now it’s $ 23. Why can’t silver return to its all-time high? This is the way markets usually work, ”he says.
Investors love money because it can be a store of value and protection against rising interest rates and inflation.
At the same time, it is widely used as an industrial metal. For example, silver is an essential component of solar panels. Thus, with the increasing adoption of solar power, the demand for gray metal could be further stimulated.
Rising prices are benefiting miners, so some of the easiest ways to play off an impending silver boom are through companies like Wheaton Precious Metals, Pan American Silver, and Coeur Mining.
Unlike silver, which is trading less than half of its all-time high, copper is reaching new highs.
But Rogers continues to love copper for a very simple reason: electric vehicles.
“An electric car uses several times more copper than a combustion car, so there is going to be a huge demand for some of these metals that we didn’t have before,” he explains.
“Yes, it’s at an all time high now, but electric cars are just getting started. “
As with silver, investors can use copper miners to gain exposure to the metal. Companies like Rio Tinto, Freeport-McMoRan and Southern Copper are well positioned to take advantage of the copper boom.
To be sure, many copper miners have already experienced substantial increases in their stock prices. The Global X Copper Miners ETF has risen by over 80% in the past 12 months.
If you’re hesitant to go for a hefty price tag, you can build your own copper wallet just by using digital cents.
Rogers likes agricultural products, like sugar or corn. But this time, he also emphasizes the importance of the farmland itself.
“Unless we stop wearing clothes and eating, farming will improve. If you really, really like it, go ahead and buy yourself a farm and you’ll get very, very, very rich, ”he says.
Indeed, farmland could be a great hedge because it has intrinsic value and has little correlation with the ups and downs of the stock market.
Over the years, agriculture has been shown to provide higher risk-adjusted returns than stocks and real estate.
The best part? You don’t have to get your hands dirty to get in on the action.
New platforms allow you to invest in US farmland by taking an equity interest in the farm of your choice. You will earn cash income from rental fees and crop sales. And of course, you will benefit from any long-term appreciation on top of that.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.