Jim Rogers: "Be very careful."

From this weekend's Cavuto on Business on FoxNews:

Ben Stein: "The world economy is slowing, the growth of demand for oil is slowing dramatically. I think the long term trend of demand for oil is very, very strong, but in the short run, inventories are piling up, even the Saudis can't find anyplace to store the oil, they're putting it in old oil tankers. There is a disconnect here, the price has got to fall with this huge overhang of supply. When it does, it knocks the props out of inflation, the interest rate rising cycle will stop, and stocks will rally."

Jim Rogers: "Well, Ben may be right, the market should rally after this collapse it's had recently, but Ben, we may already be in recession and the markets are gonna be down this year, and probably down into next year, so be very careful."

The ingredients are certainly there: rising interest rates, high energy costs, and what is increasingly smelling like a housing bust. And the whole stock market is stinking up the joint.

Jim Rogers, as far as I am concerned, has good gut instincts. He also ran one of the early hedge funds with George Soros.