Need to Know: The dollar is doomed — but may pay off when the next bubble takes hold, warns Jim Rogers

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Stocks ended with a flourish higher last week, thanks to weaker-than-expected jobs data that didn’t derail expectations for more easy money from the Fed but weren’t weak enough to signal a looming recession.

“Until we see a clear sign that the majority of economic data has deteriorated significantly, we do not foresee a recession dragging equities lower in the fourth quarter,” Adam Kobeissi of The Kobeissi Letter tells clients in his latest newsletter. Of course, clearing one hurdle for a market seemingly beset by them doesn’t mean investors should get too giddy.

While the S&P 500’s SPX, +1.42%  Friday rally brings it back within 2.5% of a July 26 record, a report that China isn’t keen on a broad-scale trade deal when it meets with the U.S. later this week has triggered early losses for stock-index futures.

Our call of the day is focused elsewhere — on the fate of the dollar. Enter Jim Rogers, the chairman of Rogers Holdings, who says dollar fundamentals are “horrible,” but he’s buying it to prepare for the currency’s last-gasp rally.

“People would think the U.S. dollar is a safe haven, it’s not. The fundamentals are horrible. Nobody in his right mind would buy the U.S. dollar, but I own a lot…because I’m not in my right mind. I’m assuming that the rest of the world is not in its mind either and they’re all going to buy it,” Rogers told Real Vision in a recent interview.

He predicts the dollar will eventually get overpriced and turn into a bubble, and then the veteran investor, who founded the Quantum Fund with billionaire George Soros in the 1970s, will sell. “I’m not very good at market timing but I would expect it to be in the next period of turmoil, which will be coming in the next two or three years,” he said.

The dollar headwinds are numerous he says, given such factors as the U.S. is “the biggest debtor nation in the history of the world,” and countries such as China, Russia and Brazil are hard at work to find an alternate international currency.

Rogers says he’ll switch to the Chinese renminbi and/or gold when he senses it’s over for the dollar. But he doesn’t own any U.S. stocks, and is only really interested in Russian equities. That is as he’s still predicting the “worst bear market in my lifetime.”

The market

Dow YM00, -0.21%, S&P ES00, -0.23% and Nasdaq NQ00, -0.26%  futures are down on trade worries. Oil US:CLV19 is up, gold GCZ19, -0.57% is down and the dollar DXY, +0.05% is flat.

European stocks SXXP, +0.36% are lower and the few markets not on vacation in Asia markets ADOW, +0.16% ADOW, +0.16% closed mixed.

Read: German manufacturing orders weaker than expected

The buzz

GE GE, -1.61%  shares are up after the industrial conglomerate said it will freeze pensions for roughly 20,000 workers.

HSBC HSBC, -0.37% HSBA, +0.17%  could be axing another 10,000 jobs, says a report.

Read: An Italian fitness company that’s like Peloton, but profitable

U.S. troops are pulling out of northeast Syria ahead of an expected Turkish invasion, news that has sent the embattled Turkish lira USDTRY, +0.8462% skittering lower against the U.S. dollar.

A second whistleblower has emerged with information about President Trump’s Ukraine dealings, and may submit a formal complaint/ Trump and his allies have denounced the original complaint as politically motivated.

On the data front, we’ll get consumer credit later. On the Federal Reserve front, Kansas City President Esther George said she was not so sure about more interest-rate cuts, while Chairman Jerome Powell is slated to offer brief remarks at 1 p.m. Eastern at an event in Salt Lake City, Utah.

The tweet

Houston Rockets general manager Daryl Morey, triggered chaos over a now-deleted tweet he sent that appeared to show support for Hong Kong protests. Tencent 700, -0.74%, media partner of NBA in China and the owner of the Brooklyn Nets, are among many who have voiced dismay. That is after a violent weekend of protests in Hong Kong.

Random reads

Three people have one the Noble Medicine prize for learning how cells use oxygen

And a teen activist is a strong candidate for the Nobel Peace Prize to be awarded this week

Woman apparently manages to board Delta flight with no passport, no ID

Stop hating on plastics, says PM of Japan, one of the world’s biggest exporters of plastic waste

2.4 million people tried to buy 135,000 tickets to U.K.’s 50th annual Glastonbury festival

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