Veteran investor Jim Rogers is standing by real assets such as gold and silver as he braces for the biggest market downturn in eight decades. “The next bear market will be the worst in my lifetime because the debt has gone up by such staggering amounts in the past 14 years,” said Rogers. “The best place to be when you have inflation is real assets, and real assets are commodities.” In other news, experts are calling the debt ceiling deal the most monumental in more than a decade. According to those with direct knowledge, its main points surround food assistance programs, permits for energy projects, COVID relief fund and IRS cuts, student loans, and overall spending limits. While it is unclear how the economy will be impacted by its terms, the market must now focus on whether the Fed will lift interest rates at its June 14 meeting. Analysts are calling it a toss-up, suggesting that any calm provided by the debt ceiling deal will be short-lived.

Markets Insider/Theron Mohamed
Jim Rogers is bracing for the worst bear market of his life, de-dollarization, and higher interest rates. Here are the investing legend’s 7 best quotes from a new interview.

Jim Rogers is bracing for the biggest market downturn in eight decades.

The 80-year-old investor issued the grave warning during a recent RealVision interview. He also cautioned the US dollar’s global dominance is under threat, and higher interest rates will be necessary to rein in soaring prices.

The cofounder of George Soros’ Quantum Fund also slammed US lawmakers for the current debt-ceiling debacle, touted commodities as the best hedges against inflation, and dismissed the idea that governments will embrace bitcoin.

Continue reading, here.

Politico/Jennifer Scholtes, Caitlin Emma, Meredith Lee Hill, & Josh Siegel
Here are the 6 must-know provisions of the new debt ceiling deal

The debt ceiling deal that President Joe Biden and House Speaker Kevin McCarthy struck late Saturday is a true meet-you-halfway compromise between the stark ultimatums the leaders have issued for months.

A far cry from the “clean” increase Biden had sought for the nation’s $31.4 trillion borrowing cap, the bipartisan agreement is also much less punchy than the sweeping package House Republicans passed last month as they demanded drastic spending cuts, major changes to energy permitting rules and an end to many of Biden’s signature accomplishments, including student loan forgiveness and pieces of the Inflation Reduction Act.

While the details are still fuzzy, with the text due to be released sometime Sunday, the agreement is undoubtedly the most monumental debt limit compromise the two parties have struck in more than a decade. If party leaders can whip enough support to clear the deal through both chambers in the coming days, it would largely freeze non-defense discretionary funding in the fiscal year that kicks off in October, revive the threat of across-the-board cuts and impose the most substantive restrictions in decades on the country’s leading anti-hunger program.

You can read the full article, here.

Yahoo Finance/Brian Sozzi
With the debt ceiling over, here’s the next problem for investors: Morning Brief

The tentative debt ceiling deal between President Joe Biden and Speaker Kevin McCarthy is a much welcomed way for investors to return from the Memorial Day holiday weekend. Default risks are off the table for the next two can-kicking years.

On paper, the resolution should bring some calm to debt markets and ratchet down the commentary coming from C-suite leaders at various investment bank conferences this week and in June.

By no means is the deal perfect.

One has to wonder how consumer spending will be impacted as the freeze on student loans gets lifted in early September as part of the agreement. And two, the government spending caps could take a bite out of the economy.

You can read the full article, here.

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