This is how the how the final rally and collapse will unfold

They [Fed] will continue on the path they have stated until there is a lot of pain in the market, and then they will panic. And they will get in and stop cutting back. Everybody will heave a sense of relief and say its all going to be okay, the markets will get a rally and that will possibly be the final big rally. That may not be until 2015 or 2016, I dont know.

Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.