Despite its ups and downs, the U.S. stock market has long been a go-to destination for investors, with the benchmark S&P 500 delivering a return of more than 90% over the past five years. Yet investing legend Jim Rogers isn’t feeling optimistic — far from it.
“I sold all my U.S. stocks recently, because I’ve seen this party before,” he said in a recent interview with Wealthion. “You see a lot of new people talking about how much fun it is, how easy it is … I hope it stays easy to make money for lots of people for the rest of history — [but it] never has.”
Rogers pointed out that more and more investors are becoming “exuberant and confident,” and he believes that kind of sentiment often leads to trouble.
One problem he highlighted is the sheer size of America’s debt.
“The U.S. is the largest debtor nation in the history of the world. And I sit and look at the numbers, and I say, can’t they read in Washington? Don’t they know what’s happening?” he said.
According to Treasury Department data, the U.S. national debt now stands at $36.58 trillion.
Rogers also warned that this time, even the Federal Reserve “doesn’t have unlimited amounts of money that can save us all,” adding that the central bank “usually makes things worse.”
His suggestion? Tread carefully.
“My advice is, be very, very careful wherever you think about investing. This is a rare time in investing history,” he stated.
If you share these concerns, here’s a look at a few strategies to help protect yourself.
