Stocks have climbed in 2023 after suffering through a bear market in 2022. But according to legendary investor Jim Rogers, the next downturn could be more painful.

In a recent interview with Real Vision, Rogers explained why his outlook is so bleak.

"[In] 2008, we had a bear market because of too much debt," he said. "Look out the window since 2008, debt everywhere has skyrocketed."

And that does not bode well for investors.

"It's a simple statement that 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."

Rogers has plenty of experience in leveraging market volatility to his advantage. He co-founded the Quantum Group of Funds with George Soros in 1973 and played a crucial role in navigating the fund through multiple market downturns and economic crises in the 1970s and 1980s.

Here's a look at where he sees dangers and opportunities now.

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The Greenback

Rogers argues that instead of negotiating temporary ceilings for America’s gigantic debt problem, Washington should focus on determining how to address the ever-expanding debt pile.

"Every country in history that's gotten into this situation has had serious problems eventually," the 80-year-old market veteran warned. "And we will, too."

The U.S. debt problem could also spell trouble for the nation's currency.

"You should be extremely worried because if you’re not, you don’t know what’s going on," he said. "Many countries are starting to look for alternatives to the U.S. dollar, partly because of its horrendous debt problem."

Speaking to a group of emerging fund managers during the Fund Launch Live event in May, Rogers said "No world currency has been on top for more than 100, 150 years at a time – they all change. We’ve been on top for a long time and now there are reasons to start looking for a competitor to the US dollar."

Rogers is on the lookout too as he sees "something bad" happening in the currency markets over the next two to three years.

Fighting Inflation

Spiking price levels have been in the headlines over the past year. To Rogers, though, rampant inflation is no surprise.