Jim Rogers and Marc Faber recommend investors cut back on their holdings in equities after the expected market correction happened yesterday which eliminated over $1 trillion in market value in the U.S.
Both Rogers and Faber said the market had been due for a correction, and it not something to be overly worried about, at least not yet.
While the 3 to 4 percent drop was a large number, Rogers said at this time it's no reason to panic. Faber believes this is the beginning of an ongoing decline in market value for some time to come.
Rogers addressed the Greek sovereign debt crisis again, reiterating it will be a good thing for Greece and the euro if they default. Even so, Rogers added fears of contagion could create an unstable market which could go on a wild ride, and that contagion isn't limited to the southern nations in Europe, as it could easily spread to the UK and the United States, said Rogers.
Faber's advice was for investors to decrease their positions whenever the share prices rebound, while Rogers continues to advise investors to invest in raw materials and agriculture.
Showing posts with label Market Correction. Show all posts
Showing posts with label Market Correction. Show all posts
Friday, May 7, 2010
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.
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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