Don’t be fooled by the 30 percent-plus rally over the last six weeks says wall street king Jim Rogers.
Equity prices are overvalued , he added.
“I’m not buying shares,” Rogers told CNBC yesterday . “The bottom will probably come later this year, next year, who knows when.”
And the reason why the stocks will fall is Because governments have "flooded the world with money" he explained .
"In the United States and other countries, the problem is too much consumption and too much debt", Rogers eadded. But governments and central banks are trying to solve that problem with more of the same.
This “defies belief" and won’t work, he says.
"I mean … you give me five or six trillion dollars, I'll show you a very good time, there's no question about that."
you should invest your money in commodities not stocks said Jim Rogers.
"Fundamentals for General Motors are not getting better. Fundamentals for Citibank are not getting better” he points out.
“I can think of very few industries in the world where the fundamentals are getting better. But the fundamentals of commodities are getting better, full stop."
Rogers’ favorite commodities include the agriculture sector gold and silver , although he prefers silver to gold .