Jim Rogers Thinks Goldman Case Could Be Catalyst For Correction (GS)

While many investors believe the fallout from the SEC's fraud charges against Goldman Sachs (NYSE: GS) will be minimal, one billionaire investor sees it a little differently.

Legendary investor Jim Rogers told CNBC Saturday that, "Any market that goes up this much, this fast, this steadily without a correction - it's not normal. When that sort of thing happens, the market could be setting itself up for a 15-20% correction."

While Rogers does not think the Goldman issue itself will cause a correction, it may be the catalyst for selling.

Rogers was not surprised by the SEC's actions, noting these kind of investigations usually take place after a major financial meltdown. Rogers said it is important to stay calm and not overreact to the situation.

He went on to add, "It's not time to sell in any significant way." However, he said investors should consider adding short to their portfolio and suggested investors short indexes.

Finally, as an avid commodities investor, Rogers said any pullback in gold is an opportunity to buy the yellow metal.