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When Jim Rogers speaks, many investors pay attention to his views.
As the legendary co-founder of the Quantum Fund, Rogers has built a career on seeing what others miss. And right now, he’s sounding the alarm: In a market riddled with volatility and hype, Rogers believes the current environment could favour bearish strategies.
His advice? Focus on overheated stocks, tune out the noise, and invest where your expertise lies. It may not be flashy, but it could be effective.
Read on to discover what else Jim Rogers revealed in his latest interview with Vantage.
Note: Interview responses were minimally edited for clarity.
Why Short Now: This Isn’t a Correction—It’s a Setup
Rogers anticipates a prolonged—and possibly severe—downturn in global markets, one that could punish complacent investors and reward the well-prepared.
In his view, this isn’t just a short-term correction; it’s the start of a much broader bear cycle.
“Look for things to sell short. I suspect we’re going to have very bad stock markets for a long time.”
In that context, Rogers sees shorting as not just a means of protecting capital— but potentially generating returns—if approached with discipline. For investors willing to think differently, this environment may present a rare opportunity to generate returns on the downside.
Related article: What is Short Selling (Shorting) and How Does It Work Exactly?
What to Short: Targeting the Overheated
“Usually when the markets are going down, the best thing to do is to short the hot stocks in the last bull market.”
The veteran investor is particularly wary of tech—those once ‘unshakable’ stocks had lost more than $1.8 trillion in market value when Trump implemented steep tariff hikes [1]. These are the names that often disconnect from fundamentals, making them prime targets when sentiment shifts.
Why these stocks, though? Because when the tide turns, the high-fliers fall first—and fast. Rogers’ method is surgical: Look for the overvalued, overbought, and overhyped. That’s where the real shorting opportunities lie.
How to Short Like Jim Rogers
Think shorting is too complex or risky? According to Jim Rogers, a strategic and informed approach—without relying on guesswork—can make all the difference.
Go Broad with ETFs and Sector
If picking individual stocks feels like a guessing game to you, Rogers suggests zooming out.
Shorting sector exchange-traded funds (ETFs)—such as those tracking technology, automotive, or even the broader S&P 500—can offer a cleaner, more diversified approach.
“Learn about ETFs and find the ones you know are going to have problems and short those ETFs,” he explained. “You can short baskets of stocks. For the US market, you can short a basket of the S&P 500, automobiles, you can short a basket of nearly everything.”
According to Rogers, rather than stressing over a single company’s earnings, investors can position against broader sector trend. This strategy offers two major benefits: Diversification and simplicity.
You don’t need to be an expert on every balance sheet. Instead, understand the sector’s macro direction. If the fundamentals are weakening, shorting the ETFs could let the broader momentum do the work.
Related article: Portfolio Diversification: Can It Save Your Investments in 2025?
Know What You’re Doing—or Don’t Do It at All
But Rogers is unequivocal: Shorting is not a casual sport.
“If you don’t know specific companies, you probably shouldn’t be shorting,” cautioned Jim.
This is not a playground for guesswork. Shorting amplifies your mistakes, and without solid fundamental analysis, you’re likely setting yourself up for failure.
To short effectively, it’s essential to understand a company’s business model, revenue drivers, and any underlying or potential vulnerabilities. That deep level of insight is what separates seasoned traders from speculative gamblers.
For Rogers, thorough research isn’t optional; It’s non-negotiable—especially in today’s highly volatile and unpredictable environment
Here’s How Smart Investors Stay Ahead
Rogers believes that clarity and conviction may be essential for informed decision-making. Rogers argues that real edge comes not from chasing hype, but from leveraging what you already understand deeply.
Trade What You Know
In a market experiencing whipsaws due to Trump tariffs and escalating US-China trade tensions, Rogers offers a refreshing reminder: Boring is best. And that starts with focusing only on what you understand.
“[Traders] should start looking at the areas where they know a lot, figure out what’s good in that area, and that’s where they should invest,” he explained. “They should not listen to hot tips from anybody because hot tips will ruin it. They should just stick with what they know.”
If you have deep insight into a sector, that’s your hunting ground. That’s where inefficiencies first appear and where you can trade with confidence, whether you’re going long or short.
So, ignore the noise and stay within your circle of competence.
The Boring Investor Wins
Rogers embraces boredom — and he thinks you should too.
Rogers said, “Be a boring investor, and you will be very successful.”
Rogers believes that successful long-term investors tend to avoid speculative, high-risk strategies.
In a world addicted to fast gains and flashy trades, the boring investor quietly compounds wealth—one well-informed, unemotional decision at a time.
They’re disciplined, methodical, and consistent. They do the research, sit on their trades, and tune out the hype. It’s not sexy, but it could work.
Should You Short Gold and Silver?
While Jim Rogers has long been known for his affinity towards gold and silver, he’s quick to point out that even traditional safe-haven assets can be shorted, if you have a strong enough reason to.
“Shorting the market for gold and silver is different, but you can short them,” he shared. “If you think that gold and silver are going to go down in value, it is very easy to sell them in short.”
That said, Rogers makes his position clear:
“I don’t short gold and silver. I own gold and silver.”
That’s because his conviction lies in their long-term resilience, not short-term speculation.
When it comes to shorting, though, Rogers still favours hot, speculative stocks, especially the ones that skyrocketed in the last bull run. These are typically the most overvalued assets when sentiment shifts.
So, while gold and silver can be shorted, Rogers believes the real opportunity on the downside lies in the overhyped stocks that were heavily chased just months ago.
Rogers believes current market conditions may present shorting opportunities
According to Rogers, shorting isn’t just a strategy—it’s essential. In the current high-volatility markets, knowing how to profit when prices fall is a survival skill. Those who solely rely on bullish setups leave themselves vulnerable when sentiment shifts and corrections hit.
According to Rogers, bear markets aren’t just periods of decline—they’re moments when real wealth changes hands. The unprepared panic. The informed capitalise. That’s the dividing line.
His advice?
“Fundamental analysis is the best, it’s extremely important,” says Rogers. “[It] teaches you about companies and about industries. And if you’re going to be investing, you should know what you’re doing.”
In other words, be ready, be curious. Learn to short intelligently, backed by research and discipline.
And above all, don’t be afraid to go against the crowd. Because when the masses are chasing hype, the real opportunities lie in seeing what’s cracking beneath the surface and having the conviction to bet on the fall.
If you’re interested in exploring trading opportunities in rising or falling markets, you can learn more about CFD trading with Vantage. Gain access to 1,000+ CFD products and enjoy $0 commissions* on US shares.
*Other fees may apply.
It’s important to bear in mind that CFD trading carries a high risk of loss and the market conditions in 2025 are particularly volatile due to global tariffs and political instability. While leverage can amplify profits, it can also significantly increase potential losses. Always ensure you understand the risks involved and trade responsibly.
Related Articles:
- Inside Jim Rogers’ Portfolio: How He’s Positioning as Trump Shakes Up the Markets
- The Dark Side of Tariffs: What Investors Need to Know
- The Jim Rogers’ Take: Financial Markets & Commodities
References
- “Tech stocks whipsaw in volatile trading session as Trump stands by tariffs – CNBC” https://www.cnbc.com/2025/04/07/tech-tesla-nvidia-stocks-fall-as-trump-stands-by-tariffs-selloff-deepens.html. Accessed on 16 April 2025.
