U.S. stocks, which surged the most in five years yesterday, will likely continue their rally this year because the ``out of control'' Federal Reserve is cutting interest rates to save investment banks from collapse, investor Jim Rogers said.
The Fed's support is ``why we're having a big rally, but that's not going to solve the problem,'' Rogers, chairman of Rogers Holdings and co-founder of the Quantum Hedge Fund with George Soros, said during an interview with Bloomberg Television from Singapore. ``The system is terribly corroded.'' ...
...Rogers, whose commodities index has climbed more than fivefold since its inception in 1998, said raw materials are about halfway through their rally.
He also said the dollar, which has declined 15 percent against the euro in the past year, is likely to weaken further. The Fed should stop cutting rates, which would end that decline, Rogers said.
The Fed's mandate is ``to keep a sound currency, not to prop up Wall Street,'' said Rogers. He recommended selling the dollar in a Nov. 15 interview. The currency has fallen about 6.6 percent against the euro since then.