Prominent market analyst and investor Jim Rogers said in a recent interview that he expects interest rates to keep growing mid-term. The expert reminded us that after the 2008 financial crisis, the governments of many countries printed, borrowed, and spent unprecedented amounts of money.
According to Rogers, this was the reason why the economy remained so strong for the past few years – and it's still benefiting from the money spent by the government.
Seeing the recent bank collapses, multiple interest rate hikes are unlikely. However, if inflation continues to grow, central banks will have to raise interest rates again – and this will lead to a market collapse, Rogers said. A recession is also possible – though not inevitable at this point.
Under current conditions, commodities remain cheap: silver is trading 60% below the ATH and sugar, more than 50%. Moreover, commodities usually perform well during times of high inflation. In general, real-world assets are a good way to protect oneself from the inflation and chaos that are to come.
Rogers does see opportunities in the stock markets, too – in Japan and China, for example. Both markets are now far below their ATH market caps and aren't in a bubble stage.
As for the mining stocks, Rogers suggests that only with the knowledge of the industry invest in them.
What about the safest currencies, such as the Swiss franc? Rogers says that in the past, the franc used to be the least vulnerable currency, but nowadays even the Swiss national bank isn't fully reliable anymore. Before, the franc was backed by gold and solid reserves, and now it's backed by Apple, Amazon, and Samsung stocks. Jim Rogers is now more worried about the fate of the Swiss franc than ever before and has to ask himself if healthy currencies even exist anymore.
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