Buy the rumour, sell the news: What Jim Rogers says on market crash; predicts 'big correction' US stocks

Veteran American investor Jim Rogers on Tuesday spoke to Business Today TV on a lot of topics ranging from India's stock market crash to signs of a "big correction" in the US stocks later this year.

"When some good news is coming, the (usual) expression is 'Buy on the rumour and sell on the news'. We thought this (general elections outcome) was coming, so many people bought in advance. Now that it is here and actually happening, it is common for a market to sell off. My inclination at the moment is just a typical 'Buy on the rumour and sell on the news'. If Mr Modi does what he said and emphasises manufacturing in India, it is going to change India dramatically and the world as well," the market veteran said.

If India needs to attract more foreign investors, it should open up more, he suggested while citing that investing in Australia is easy but investing in India is not that easy yet.

When asked to share an update on commodities, Rogers said, "Silver (price) is down around 30-40 per cent from its all-time high. I would buy silver at current prices, in fact, bought some yesterday. I'm more bullish on silver than gold. I own both but prefer silver at current prices."

On the global front, the market expert believes that the US stocks could see "a very big correction" later this year.

"US markets have been going up for 14 years, which is the longest in American history. I can see the signs that it is going to come to an end later this year. And, when that happens, it is going to be a very big correction in the US because the debt is unbelievably high. We had a problem in 2008, since then debt has skyrocketed," he stated. 

When we have a bear market in the US again, it is going to be very bad, Rogers further said.

Meanwhile, Indian equity benchmarks fell sharply today after vote-counting trends showed Prime Minister Narendra Modi's BJP-led alliance was likely to win a majority, but the extent of the victory was narrower than predicted in exit polls.

The 30-share BSE Sensex pack nosedived 4,390 points or 5.74 per cent to settle at 72,079 and the broader NSE Nifty index moved 1,379 points or 5.93 per cent down to 21,884 level.