The Quantum Fund’s historical performance is most often associated with Co-Founder George Soros. The fund achieved an average annual return of 30% from 1970-2000.
Perhaps Soros’s most famous bet came against the pound in 1992 when it netted his fund about $1 billion in one trade, considered by some to be the greatest currency trade of all time.
However, Soros didn’t start the Quantum Fund alone. Instead, he founded it alongside another now-famous investor, Jim Rogers. While Rogers left the fund in 1980 to “retire” and travel around the world on his motorcycle to search for international investment ideas, eventually turning his travel experiences into a best-selling book called “Investment Biker,” he continued to share his thoughts on the market.
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Seemingly, the best thing he can say about stocks at the moment is that it’s not the right time to short them … yet.
In a recent interview, Rogers shared that the world essentially is in an everything bubble, telling Soar Financially, “Bonds are a bubble, property in many countries is a bubble, stocks are getting ready for a bubble.”
Even with his bearish conviction, he points out that he’s “not shorting yet because often at the end there’s a blowoff and things get really crazy.”
To play out his thesis as he waits for his planned short, Rogers is happy to sit in hard assets such as gold and silver, explaining “everybody should have some silver and gold under the bed.”
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Investors who don’t want the stress of storing the actual physical metal in their possession could consider an exchange-traded fund (ETF) such as the SPDR Gold Trust (NYSE:GLD) or the iShares Silver Trust (NYSE:SLV).
It should be noted, however, that Rogers has not been accurate with his predictions in recent years.
In 2011, he shared that there was a 100% chance of a crisis worse than in 2008. If investors heeded his advice then and never got back into a market-tracking index fund such as the SPDR S&P 500 ETF Trust (NYSE:SPY) they would have missed out on about 290% returns. Of course, these impressive returns came despite there being wars, a pandemic, flash crashes and inflation scares.
As the old expression goes, even a broken clock is right twice a day. However, to completely dismiss the advice of one of the world’s most legendary investors might not end up looking wise if Rogers is right about a serious crash being around the corner — especially if it is the worst in his lifetime, given how much he’s seen in his 81 years.
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This article George Soros’s Former Co-Founder Sounds Economic Alarm Saying, ‘The Next Problem Has To Be The Worst In My Lifetime’ — Waiting For Right Time To Go Short originally appeared on Benzinga.com
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