Jim Rogers: The US stock market will return to a bear market at the earliest by the end of this year and at the latest by next year

Is a US stock market bear market coming? Jim Rogers, the international investment guru who accurately predicted the 1987 stock market crash and was one of the earliest to forecast the US subprime mortgage crisis, has once again spoken out, warning investors: the bear market is coming.

Recently, Rogers stated in an interview that the current US stock market environment shows signs of a bull market decline rather than a strong bull market, and he predicts that the US stock market will return to a bear market by the end of this year at the earliest and next year at the latest. "This is the longest period without a bear market in US history. We should have had one a long time ago."

Rogers further pointed out a series of worrying signs in the US stock market, such as: a large number of new investors entering the market, declining market breadth, high levels of debt, etc. These phenomena all indicate that the bull market may be coming to an end.

Signs of the Bull Market Coming to an End

Rogers stated that there is an increasing number of investors entering the US stock market recently, which is typically a characteristic of the late stage of a bull market, indicating that market sentiment is overly optimistic and risks are accumulating.

Furthermore, the market breadth of the stock market is declining, meaning the number of rising stocks is decreasing while the number of falling stocks is increasing. This indicates that internal market forces are weakening, and the bull market may struggle to continue.

Lastly, the phenomenon of mounting debt levels in various countries has raised concerns for Rogers. He mentioned that countries that previously had little debt, such as Germany and Japan, as well as the debt levels of the US government, corporations, and households, are at historically high levels. High levels of debt will limit economic growth potential and increase the fragility of the financial system.

So the next bear market will definitely be very bad, ending in a climax of selling, or as you said, ending in a collapse.

However, Rogers is not very pessimistic. He believes that although a bear market will bring short-term losses to investors, it is actually beneficial for the stock market in the long run. Because a bear market can clear excesses in the market, such as overvalued stocks and over-leveraged investors.

Clearing excess is always good for the system - unless you are the one being cleared.

He believes that through the baptism of a bear market, the stock market will be able to restart on a healthier basis.

Facing the upcoming bear market, Rogers advises investors to take the following measures:

1. Invest in areas you are familiar with: Do not blindly follow popular stocks, but focus on industries and companies you are familiar with and understand.

If I told you that you could only make 25 investments in your lifetime, you would be very careful with them. Many people might say that's boring. If you want to be a great investor, then be boring.

Stick to what you know. Don't go to the bar on Saturday night and tell everyone about the latest hot stock.

2. Stay vigilant at all times: In history, Britain went from being the world's number one to bankruptcy within fifty years, and the same thing could happen to the US. Therefore, pay attention to what has happened in the past, because it may happen again.

It's hard to teach young people because they know everything. But I will show them history.

(National bankruptcy) This happens frequently in world history, so be very careful, be worried. Pay attention to what has happened in the past, because it may happen again