The US stock market exhibited one of the worst performances in history in the first three months of this year. The S&P 500 Index, which was at the level of 3.200 at the beginning of the year, fell to 2.200 a week ago. Although the index has now reached the level of 2,500, many companies were negatively affected during this period.
Rogers Holdings Chairman of the Board, Jim Rogers, thinks the stock market will take a heavier blow. According to Rogers, the 2 trillion dollar incentive package prepared by the USA will ease the markets for a while, but the effects of this will not be long.
Jim Rogers, one of the famous names in the investment world, established the Quantum Fund together with George Soros in the 1970s. Rogers has been making pessimistic statements about the stock market since 2018 and saying the market will collapse. According to Bloomberg’s report, Rogers repeated these comments.
Jim Rogers thinks that we will feel the economic effects of the coronavirus for a while and the stock markets will suffer severe damage in this process. Rogers, who says the bear market is approaching, comments:
“In the next few years, we will see the worst bear market I have ever seen in my life.”
The Trump administration recently prepared a $ 2 trillion incentive package, and the Fed announced it would inject a large sum of money into the economy. However, according to Rogers, all this will not be enough to save the markets. The main reason for this is that the debt levels of the companies are very high and that the markets will not be able to bear this debt after some point.
Rogers has been saying that corporate debt has increased for years, warning people in this direction. According to Rogers, we are getting closer to the moment when the crisis will erupt every day:
”The economic effects of coronavirus will not end soon, because the damage is very heavy. Too much new debt due to coronavirus. ”