Published on Jun 8, 2017
Henry Blodget examines market valuations and the dismal expected returns that go along with them. Jim Rogers says the market will crash in the next few years and calls the Fed clueless.
Henry Blodget dives deep into two charts from John Hussman. Based on many different market valuation measures, stocks are extremely expensive. Blodget does point out that stocks can always get more expensive in the short term. However, the expected long-term return on a portfolio of stocks, bonds, and cash is very low based on these valuation levels.
An interview with legendary investor Jim Rogers. Rogers predicts a market crash in the next few years. One that he says will rival anything he has seen in his lifetime. He also goes after the Fed. Rogers says the Fed is clueless and is setting the US up for disaster. Rogers likes investing in depressed markets. Rogers says its just like your parents taught you… “Buy low and sell high. Don’t buy high and hope it goes higher.” He is investing in China, Russia, Japan and agriculture. All these markets are depressed. Unlike the US which is at an all-time high. Though Rogers says the most important thing is to invest in what you know.