Rogers observed that most markets are currently performing well and reaching new highs due to the massive amounts of money printed by nearly every central bank worldwide in recent months and years.
"There's a lot of free money around. It has to go somewhere and it's been going into the investment world so everybody's having a good time…," Rogers said. " When everybody is making a new high, that's a risk. Whenever that happened in the past, it usually led to a decline, a bad market, and a bad economy... Soon that will be a problem."
Rogers explained that because the US is the largest economy in the world, whatever happens there affects the rest of the world.
According to Rogers, the downturn will begin around the time of the US elections or shortly after.
The US presidential election will be held on November 5. The main rivals in the race are Biden, a Democrat, and his Republican predecessor, Donald Trump.
Regardless of the winner in the upcoming US presidential elections, the markets will react positively, but this period of "happiness" will be brief, legendary American investor Jim Rogers told Sputnik
"People expect Trump to win. They think that Trump will be good for the market. So if he wins, the markets will stay strong, not too much longer, because the markets have been strong for a long time now," Rogers said. "Likewise, if Biden wins many people will think ‘we will have the same old good things’. So whichever one wins, the market is going to be happy for a short period of time."
Rogers added that the markets' strength won't last long, as they have been strong for a long time, so regardless of who wins, problems will begin after the elections.