How to Prepare for the Biggest Market Downturn Veteran Investor Jim Rogers Tips

While the stock market continues to break records, it seems absurd to talk about market reversals. However, experts say that a market downturn is not only a possibility but also a probability. Even the most successful investors can lose everything if they are not prepared for a market downturn. That's why learning how to prepare for the biggest market downturn from a smart, knowledgeable source can help protect your finances. Jim Rogers is one such experienced source to learn from.

Jim Rogers is a renowned investor, author, and commentator on financial markets. Rogers co-founded the Quantum Fund which has grown 4,200% in just ten years. He also started the Rogers International Commodity Index, and despite his retirement, he still provides financial information to those willing to listen. Rogers has been investing for more than 50 years and was able to predict the commodity boom of the 1970s and the 2008 financial crisis. Its philosophy is to do thorough research, believe in yourself, and prepare for it. worst without ignoring current.

Current state of the market and why a recession is likely.

More than a decade has passed since the last recession and investors are worried about the appearance of the next one. Several warning signs such as high global debt levels, geopolitical issues and inflationary pressures make the deceleration even more plausible.

Since the start of the COVID-19 pandemic, the global economy has had to adjust to the new normal. Governments around the world have rolled out stimulus packages, printing huge sums of money to avoid the economic fallout. As a result, stock valuations have deteriorated, with price-to-earnings (P/E) ratios rising much higher than historically warranted. Despite the upbeat growth in recent years, many economic indicators point to the possibility of a recession. For example, the Dow Jones Industrial Average lost 5.6% in the third quarter of 2021 alone. The state Treasury has withdrawn trillions of dollars in assets over the past decade, and investors fear it won't. endure in the future.