Jim Rogers sold all of his US stock holdings because he’s ‘seen this party’ before — warns Americans to be ‘very careful.' Here’s how Canadian investors should react

Despite its ups and downs, the U.S. stock market has long been a go-to destination for Canadian investors, with the benchmark S&P 500 delivering a return of more than 90% over the past five years. Yet investing legend Jim Rogers isn’t feeling optimistic on American stocks — far from it.

“I sold all my U.S. stocks recently, because I’ve seen this party before,” he said in a recent interview with Wealthion. “You see a lot of new people talking about how much fun it is, how easy it is…I hope it stays easy to make money for lots of people for the rest of history — [but it] never has.”

Rogers pointed out that more and more investors are becoming “exuberant and confident,” and he believes that kind of sentiment often leads to trouble.

One problem he highlighted is the sheer size of America’s debt.

“The U.S. is the largest debtor nation in the history of the world. And I sit and look at the numbers, and I say, can’t they read in Washington? Don’t they know what’s happening?” he pondered.

According to Treasury Department data, the U.S. national debt now stands at $36.58 trillion.

So what does that mean for Canadian investors? With our economies so closely intertwined, the recent ups and downs of the American market have carried shockwaves across the border. Does Rogers’s warning mean Canadian investors should dump their American stocks?

“My advice is, be very, very careful wherever you think about investing. This is a rare time in investing history,” he stated.

He added that the Federal Reserve “doesn’t have unlimited amounts of money that can save us all,” adding that the central bank “usually makes things worse” in his opinion.

If you have concerns about your U.S. investments, here’s a look at a few strategies to help protect yourself.

A classic safe haven

Rogers finds refuge in precious metals.

“I own a lot of gold and silver,” he admitted. “I am not a seller of gold and silver. I hope that someday my children have all the gold and silver, because I don’t see any reason for any human being to sell gold and silver in the 21st century.”

Gold and silver have long been considered popular hedges against inflation. Unlike fiat currency, these metals cannot be printed in unlimited quantities by central banks.

At the same time, investors often look to these metals amid market volatility and global instability, as their value isn’t tied to any specific country, currency or economy.

In just the last 12 months, the price of gold has surged by roughly 33%.

Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, told CNBC earlier this year that he believes “people don't have, typically, an adequate amount of gold in their portfolio.”

“When bad times come, gold is a very effective diversifier.”

Buying gold, whether bouillon or shares in the commodity, can help Canadian investors to diversify effectively in the face of the wavering stock market. So if you have gold investments in the New York Stock Exchange (NYSE), it may be advisable to keep that there even as the economy experiences turbulence.

However, there are also Canadian gold stock options on the Toronto Stock Exchange (TSX), including Kirkland Lake Discoveries Corporation (TSXV: KLDC.V), which has been leveraging its strategic operations in Canada’s Kirkland Lake region. With a focus on innovative exploration techniques and high-grade gold assets, the company is well-positioned for long-term growth in the mining industry.

If you're looking to invest in gold stocks or ETFs, look to a discount brokerage account because you can monitor your investments easily and save money on commission and trading fees — think Questrade, Wealthsimple or CIBC Investor's Edge.

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Income, even in a down market

Like stocks, real estate has its cycles, but it doesn’t rely on a booming market to generate returns.

Even during a recession, high-quality, essential real estate can continue to produce passive income through rent. In other words, you don’t have to wait for prices to rise to see a payoff — the asset itself can work for you.

Legendary investor Warren Buffett has often pointed to real estate as a prime example of a productive, income-generating asset.

In 2022, Buffett stated at an annual shareholders meeting that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check.”

Traditionally, investing in real estate meant buying property and becoming a landlord. But you can also tap into the power of this high-growth asset by investing in REITS, real estate crowdfunding platforms, or through mortgage investment funds.

How to diversify your portfolio without U.S. stocks

As of 2024, Canadian investors held a total of $1,289.3 billion in U.S. stocks, representing 52.1% of our total holdings outside Canada. Looking south of the border for portfolio diversification is popular, not least because the NYSE tends to outperform the TSX. The S&P 500 averaged a 10.33% rate of return between 1957 and 2025. In comparison, the TSX Composite Index 1 returned 7.94% on investments on average between the period of 1971 to 2021.

However, it may be time for Canadian investors to look overseas for diversification opportunities. You can look to established markets like the London Stock Exchange or Tokyo Stock Exchange, or consider emerging markets such as India, Vietnam, and Brazil, which offer the potential for higher long-term returns when compared to developed markets like Canada’s, which tend to grow slower.

It may be difficult for the Canadian economy to perform well over the coming months and years, with the impact of tariffs and U.S. volatility taking a bite out of our economy’s growth potential. However, investments in Europe or Asia could be a good choice to keep your portfolio strong while uncertainty reigns in North America. To rebalance your portfolio safely, make sure you speak with a financial advisor who specializes in the markets you’re interested in, and can advise how much of your wealth to dedicate to foreign investment.

Also, remember that variances occur in the stock market, so it is advisable to not pull out early due to fears or a heightened emotional state. This has all happened before, so it's best to make calculated decisions best on long term wins versus short term anxieties.

Sources

1. Gold Price: Price History

2. Statistics Canada: Foreign direct investment, 2024 (Apr 30, 2025)

3. Questrade: What is the average rate of return of the stock market?