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Home / Business / The dollar is doomed – but can pay off when the next bubble catches, warns Jim Rogers

The dollar is doomed – but can pay off when the next bubble catches, warns Jim Rogers



Stocks ended a blossoming higher last week, thanks to weaker-than-expected labor data that did not meet the Fed's more simple cash outlook but was not weak enough to signal a looming decline.

"Until we see a clear sign that the majority of financial data has deteriorated, we do not anticipate a recession that will pull stocks lower in the fourth quarter," Adam Kobeissi of The Kobeissi Letter told his customers in his latest newsletter. Of course, removing an obstacle to a market that is apparently troubled by them does not mean that investors should get too dizzy.

While the S&P 500's

SPX, -0.47%

Friday tournament brings it back within 2.5% of a record July 26, a report that China is not concerned with a broad-scale trade agreement when it meets with the United States later This week has triggered early losses for stock index futures.

Today's conversation is focused elsewhere – on the fate of the dollar. Walk into Jim Rogers, chairman of Rogers Holdings, who says the basic dollar is "horrible," but he buys it to prepare for the currency's latest gasp rally.

"People would think the US dollar is a safe haven, it's not. The basics are horrible. No one in his right mind would buy the US dollar, but I own a lot … because I'm not in my right mind. I guess the rest of the world is not in the mind either and they are all going to buy it, "Rogers told Real Vision in a recent interview.

He predicts that the dollar will eventually be overpriced and turn into a bubble, and then the veteran investor, who founded the Quantum Fund with billionaire George Soros in the 1970s, will sell. "I'm not very good at market timing, but I expect it to be in the next Euro period, which is coming over the next two to three years," he said.

Dollar headwinds are many, he says. , given such factors as the United States is "the largest debtor in world history", and countries such as China, Russia and Brazil are hard at work to find an alternative international currency.

Rogers says he will switch to the Chinese renminbi and / or gold when he feels it is ending for the dollar. But he does not own any US stocks and is only really interested in Russian stocks. It's like he's still predicting the "worst bear market of my life."

The Market

The Dow

DJIA, -0.43%

S&P

SPX, -0.47%

and Nasdaq

COMP, -0.41%

down in early action as trading worries dent enthusiasm at the beginning of the week. Oil

USA: CLV19

is up, gold

GCZ19, -0.44%

is down and the dollar

DXY, -0.02%

is flat.

European Stocks

SXXP, + 0.36%

is lower and the few markets do not holiday in the Asia markets

ADOW, + 0.15%

ADOW, + 0.15%

closed mixed.

Read: German production orders weaker than expected

The buzz

GE

GE, -0.24%

shares are up after the industrial conglomerate said it would freeze pensions for about 20,000 workers.

HSBC

HSBC, + 0.13%

HSBA, + 0.43%

can provide an additional 10,000 jobs, a report states.

Read: An Italian training company that is like Peloton, but profitable

U.S. troops withdraw from northeastern Syria in anticipation of an expected Turkish invasion, news that has sent the embattled Turkish lira

USDTRY, + 0.9761%

shines lower against the US dollar.

Another alert has emerged with information about President Trump's Ukraine negotiations, and may make a formal complaint / Trump and his allies have condemned the original complaint as politically motivated.

On the data front, we get consumer credit later. On the Federal Reserve side, Kansas City President Esther George said she was not so sure of more interest rate cuts, while Chairman Jerome Powell is scheduled to make brief comments at Eastern at an event in Salt Lake City, Utah.

The Tweet

Houston Rockets general manager Daryl Morey, sparked chaos over a now deleted tweet he sent that appeared to show support for Hong Kong protests . Tencent

700, -0.74% ,

media partner of the NBA in China and the owner of the Brooklyn Nets, are among many who have expressed dismay. It is after a violent weekend of protests in Hong Kong.

Random reader

Three people hold a Noble Medicine Prize for learning how cells use oxygen

And a teenage activist is a strong candidate for the Nobel Peace Prize to be awarded this week

Woman apparently manages to board on Delta aircraft without passport, no ID

Stop hating on plastic, says Prime Minister of Japan, one of the world's largest exporters of plastic waste

2.4 million people tried to buy 135,000 tickets to Britain's 50th annual Glastonbury festival

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