Jim Rogers: Get ready for the next bear market; ‘It’s going to be terrible’

Money and Markets/JT Crowe/7-12-2019

“The way these things have always worked, in 2007, Iceland went bankrupt, and most people had no clue about that and didn’t know or care, and then later though, Ireland went bankrupt. Few more people noticed. A little while later after that, Bear Stearns went bankrupt. A few more people started noticing. A few weeks later, Northern Rock went bankrupt, then people started catching on. Eventually, Lehman Bros. went bankrupt and by then it was on the evening news all over the world.”

USAGOLD note:  Rogers makes an important point for investors to consider in terms of formulating a crisis response.  Of course, the best strategy is to diversify ahead of time in the interest of buying right and keeping the psychological damage to a minimum. It takes awhile for the public to actually believe that a crisis is underway.  Most often, a major event – like Lehman Brothers in late 2008 – precipitates the full-out response. Up until then, the markets (including gold) tend to react slowly and gather pace gradually as investors sort out whether or not the crisis is real or a false alarm that the authorities have under control.  Once the seminal event occurs, the market reaction can last many months – even years.

Repost from 7-15-2019

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