Is a bear market coming for US stocks? The international investment master Jim Rogers, who accurately predicted the 1987 stock market crash and was among the first to forecast the US subprime crisis, has warned investors that a bear market is imminent.

Recently, Rogers said in an interview that the current US stock market environment shows signs of a bear market decline rather than a bull market strength, and he expects the US stock market to return to a bear market by the end of this year at the latest. "This is already the longest period without a bear market in US history. We should have had one long ago."

Rogers further pointed out that there are a series of worrying signs in the US stock market, such as a large number of new investors pouring into stocks, a decline in market breadth, and high debt levels. These phenomena indicate that the bull market may be coming to an end.

Signs that a bull market is ending

In addition, Rogers said that there are more and more investors pouring into the US stock market recently, which is usually a typical characteristic of the late stage of a bull market, indicating that market sentiment is overly optimistic and risks are accumulating.

Furthermore, the market breadth of the stock market is decreasing, indicating that the internal forces of the market are weakening and the bull market may be difficult to sustain.

Finally, Rogers is concerned about the phenomenon of high debt levels in various countries, including Germany and Japan, which previously had no debt, as well as the high debt levels of the US government, companies, and households, all of which are at historical highs. High levels of debt will limit the ability of economic growth and increase the vulnerability of the financial system.

So the next bear market will be very bad, ending with a selling climax or a crash as you said.

However, Rogers is not very pessimistic. He believes that although the bear market will bring short-term losses to investors, in the long run it is actually beneficial for the stock market. Because the bear market can clear out excesses in the market, such as overvalued stocks and over-leveraged investors.

Clearing out excess is always good for the system - unless you are the one being cleared out.

He believes that through the baptism of the bear market, the stock market will be able to restart on a healthier basis.

Faced with the upcoming bear market, Rogers suggests that investors take the following measures:

First, invest in industries and companies that you are familiar with, rather than blindly following popular stocks.

If I told you that you could only make 25 investments in your lifetime, you would invest very carefully. Many people might consider this to be boring. If you want to become a great investor, then being bored is important.

Stick to the areas you know. Don't go to a bar on a Saturday night and tell everyone about the latest hot stocks.

Second, always be vigilant. In the past, Britain went bankrupt from being the world's number one in fifty years, and this could happen to the United States. Therefore, pay attention to what happened in the past because it will happen again.

"It's tough to teach young people because they know everything. But I show them history."

"(National bankruptcy) happens frequently in world history, so be very careful and worried. Pay attention to what happened in the past because it will happen again."

Edited by Jeffrey