George Soros‘s erstwhile partner Jim Rogers believes that the dollar is overvalued and after the recent rally against most currencies could end up in currency crisis.The rally in the U.S. currency has been driven by investors covering their shorts, Rogers, said in an interview with Bloomberg.
The dollar has climbed against all of the Global 10 currencies except the yen over the past 12 months.The U.S. currency was at $1.3592 per euro today from $1.3582. He expects Dollar crisis probably this fall or the fall of 2010.
Rogers sounded negative on equities in general and US equities in particular. “The market in the US went up very powerfully for nine weeks in a row, so of course it’s time for a correction. Fundamentals haven’t changed if you ask me. I don’t see the stock market as a great place to be in the next two to three years”.
Meanwhile Indian markets went up 4% today, despite most of the Asian Markets ending in red, driven by huge FII flows.
I would have to disagree with Rogers on one point. I think this market is a great place to be in the next 2-3 years…..on the bear side.
Yes, Jim Rogers is well known for his bearish statements. But he is bullish on commodities and has been so for many years.