Investors Don’t Understand ‘This’ About Rally: Jim Rogers
Few investors are more opinionated or more closely followed than Jim Rogers.
A frequent guest on CNBC, over the past several months he’s made some fairly thought provoking statements to say the least.
And on Tuesday Rogers told Larry Kudlow that if you’re involved in this market, and you only understand one thing about the S&P rally - it should be this!
"The 30% gains since last October have been largely driven by one catalyst -- the Fed," said Rogers.
“The Federal Reserve is pumping huge amounts of money into the market,” he explained. “This is a Federal Reserve rally. The money has to go somewhere and its going into the stock market and the commodity market.”
Rogers added that if you bought into the market last October, then, what the Fed is doing is good. However, he added for most Americans, ”It’s going to end terribly.”
Rogers believes that the amount of debt the government is creating is backbreaking and that ultimately the Fed will createterrible inflation. And he fears the combination will get so bad, it will lead to financial armageddon. Read More: Financial ‘Armageddon’ Will Happen Despite EU Deal: Rogers
Jim Rogers shot to fame in 1973 along with George Soros as the co-founder of the Quantum Fund. Since that time he’s made headlines for traveling the world then moving to Asia convinced that the 21st century belonged to China.
"The Kudlow Report" airs weeknights at 7 p.m. ET.