Home / Business / The dollar is doomed to fail – but could pay off when the next bubble comes up, warns Jim Rogers

The dollar is doomed to fail – but could pay off when the next bubble comes up, warns Jim Rogers



Equities closed last week on a slower-than-expected employment data, which did not weaken the Fed's expectations for easier money, but were not weak enough to signal a looming recession.

"Until we see a clear indication that the majority of economic data has deteriorated significantly, we do not see a recession that pushes stocks down in the fourth quarter," said Adam Kobeissi of The Kobeissi Letter in his latest newsletter. Of course, removing a hurdle to a seemingly strained market does not mean that investors should become too dizzy.

During the S & P 500

SPX, -0.28%

Friday's rally is 2.5% below the 26th July record. This is a report stating that China is not keen on trading at a later meeting with the US This week has triggered early losses on stock index futures.

Our call of the day focuses elsewhere – on the fate of the dollar. Enter Jim Rogers, chairman of Rogers Holdings, who says dollar fundamentals are "dreadful," but he buys them to prepare for the final rally in the currency.

"People would think the US dollar is a safe haven, is not it?" , The basics are terrible. No one who's wise would buy the US dollar, but I own a lot … because I'm out of my mind. I assume the rest of the world will not care and they will all buy it, "Rogers said in a recent interview to Real Vision.

He predicts that the dollar will eventually be overpriced and turn into money a bubble, and then the seasoned investor who founded the Quantum Fund in the 1970s with billionaire George Soros will sell. "I am not very good at market timing, but I would expect turbulence in the next two or three years," he said.

The headwind to the dollar is numerous, he says, given that the US is "the largest debtor nation in the history of the world" and countries like China, Russia and Brazil are working hard to find an alternative international currency.

Rogers says he will switch for the Chinese Renminbi and / or Gold when he feels it's over for the dollar. However, he has no US shares and is only interested in Russian stocks. So he still predicts the "worst bear market in my life".

The Market

The Dow

DJIA, -0.30%

S & P

SPX, -0.28%

and Nasdaq

COMP, -0.16%

at an early stage, as trade concerns affect enthusiasm earlier in the week. oil

US: CLV19

is up, gold

GCZ19, -0.40%

have fallen and the dollar

DXY, -0.02%

are flat.

European stocks

SXXP, + 0.56%

are lower and the few markets in Asia are not on vacation

ADOW, + 0.13%

ADOW, + 0.13%

mixed closed.

Read: German manufacturing orders weaker than expected

The buzz

GE

GE, -0.42%

Stocks rallied after the industry conglomerate announced it would freeze pensions for around 20,000 workers.

HSBC

HSBC, + 0.09%

HSBA, + 0.73%

could delete another 10,000 jobs, according to a report.

Read: An Italian fitness company that resembles peloton but is profitable.

United States. Troops are withdrawing from northeastern Syria in anticipation of an expected Turkish invasion, news that the embattled Turkish lira sent

USDTRY, + 1.2710%

decrease against the US dollar.

A second whistleblower has come forward with information about President Trump's Ukraine deal and can file a formal complaint. Trump and his associates described the original complaint as politically motivated.

In the data area, we will later receive a consumer credit. Commenting on the Federal Reserve, Kansas City President Esther George said she was not so sure about further interest rate cuts, while Chairman Jerome Powell is expected to make a brief statement at 1pm. Eastern at an event in Salt Lake City, Utah.

The Tweet

Houston Rocket's general manager, Daryl Morey, created a chaos about a now. He deleted a tweet that seemed to show support for protests in Hong Kong. Tencent

700, -0.74% ,

Media partners of NBA in China and owners of the Brooklyn Nets are among many who have expressed dismay. This is after a violent weekend of protests in Hong Kong.

Occasional Readings

Three people have received a Noble Medicine prize to learn how cells use oxygen.

And a young activist is a strong candidate for the Nobel Peace Prize, which will be presented this week Delta flight without passport and ID card

Stop hating plastics, says the Japanese Prime Minister, one of the world's largest exporters of Plastic Waste

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