Monday, April 19, 2010

Jim Rogers: Market Correction Coming

In a recent CNBC interview, investor Jim Rogers said the markets are due for a correction, and almost anything could be a catalyst for that happening, such as the recent charge of fraud by the SEC toward Goldman Sachs (NYSE:GS).

That is largely irrelevant said Rogers, who added while it could be something that triggers the correction, it would never be the cause of it, or anything else similar to that.

The reason the market is going to correct is no other reason than the speed and height at which it has soared, which Rogers thinks could result in correction of about 15 to 20 percent.

Essentially what Rogers is saying is the market is looking for any excuse for a correction, and when it comes it will drive down the stock market to levels it really should be at.

One suggestion Rogers reiterates is the need for investors to start thinking in terms of adding shorts to their portfolio, especially targeting indexes.

He also said some of the bank stocks are ripe to be hammered, as a number of them have been driven up for no discernable reason.

As always, Rogers said investors should continually be on the lookout for buying opportunities in gold.

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