The stock market may hit new lows this year or the next as the current rally has been largely caused by the money printed by central banks and fundamental problems remain unsolved, legendary investor Jim Rogers told CNBC Wednesday.His views echo those of renowned bear Marc Faber, who told CNBC last week that the rises in share prices did not mean the world was embarking on a path of sustainable economic growth.
"I'm not buying shares if that's what you mean. Not at all," Rogers told "Squawk Box Asia.""The bottom will probably come later this year, next year, who knows when," he added.
Governments have not solved the essential problems that caused the crisis but instead they "flooded the world with money," according to Rogers. Trying to solve the problem of too much consumption and too much debt with more consumption "defies belief" and will not work, he said."I mean … you give me 5 or 6 trillion dollars, I'll show you a very good time, there's no question about that," Rogers said.A long-term advocate of commodities, he reiterated that this will be the first sector to rise when the world gets out of the crisis, as investment in new mines, the oil sector and agriculture has been curtailed during the crisis and this will create a shortage.
"Fundamentals for General Motors [GM 1.461 0.191 (+15.04%) ] are not getting better. Fundamentals for Citibank [C 3.82 0.05 (+1.33%) ] are not getting better. I can think of very few industries in the world where the fundamentals are getting better. But the fundamentals of commodities are getting better, full stop," he said.I think I'm going to make more in agriculture, I think I'm going to make more in some other real assets for awhile, I think I'll make more in silver. But I do own gold," Rogers added. (Click here to read why Rogers thinks currencies are the next crisis).The price of oil is also likely to remain high despite the fact that the recession is taking its toll on demand, he said.
"You know supplies worldwide are declining at the rate of anywhere from 4 to 6 percent a year, yes, demand is down at the moment but in longer term, unless somebody discovers a lot of oil very quickly, the surprise is going to be how high the price of oil stays, and how high it eventually goes," Rogers added.
The next financial meltdown will be in the currency markets, as central banks around the world have been printing money, giving the appearance of massive government intervention to weaken their currencies, legendary investor Jim Rogers, chairman, Rogers Holdings, told CNBC Wednesday.
"At the moment I have virtually no hedges, I suspect it is going to be the next problem, big crisis will be in the currency markets, I'm trying to figure out what to do there," Rogers told "Squawk Box Asia".Rogers has bought the yen [JPY-TN 95.32 -0.63 (-0.66%) ] because he expects the Japanese currency to withstand future problems, but he does not have short positions in any currency and is currently not buying the yen any more."I'm certainly not short in the dollar — not at the moment, although it may be the peak. We may have come to the peak," he said. "I don't plan to own the yen forever, because you know the Japanese, Japan has some huge problems down the road."For the moment currencies may look safer than anything else in the markets, as stocks may face a new bottom since they were artificially lifted by the amount of money created by central banks, but there are pitfalls ahead, he said.
"If I am right, you're going to see a lot of currency problems in the next decade or two," Rogers said.
"Governments around the world are doing their best to destroy currencies, many currencies in fact. And people need to understand that; if they don't understand it now, they're going to find out, they're going to find out the hard way," he added
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