Basing his assertion upon unsustainable borrowing, Jim Rogers said that the next bubble to burst will be the U.S. government bond market. Rogers added in a recent interview that equities are sure to experience correction as well, after six months of going straight up.
"The next bubble that I see developing is in the United States government bond market. It is inconceivable to me that anybody would lend money to the U.S. government for 30 years in U.S. dollars at 3 to 6 percent interest rate," he said.
"So, somewhere along the line, this bubble is going to pop. If any of you own bonds, I'd be terribly worried, I would think about getting out of the bond."
As far as equities, while Rogers expects a correction, he isn't selling equities short, and the market could possibly continue going up. His idea is it's a probability that the market could go through a period of correction.
Rogers continues to be bullish on commodities, and he favors oil, precious metals and agriculture at this time.