Soros is now betting against the U.S. stock market to the tune of 1.3 billion dollars.
We are not in a recovery. What we are witnessing right now is the creation of a speculative bubble of epic proportions and that bubble is going to burst. We’ve been saying this for some time now, but when a major player like George Soros, a billionaire investor known for positioning himself on the right side of a risky trade starts actively betting against the U.S. stock market trouble is brewing.
Soros has recently purchased 1.3 billion dollars worth of put options on the S&P 500. Some have tried to down play this as merely hedging, but putting everything on one single position (the decline of the S&P) looks more like a calculated gamble than a conservative hedging strategy.
Of course Soros probably isn’t going to come right out and tell us what he’s up to, but his comments in a recent blog post hinted at the fact that he sees the danger of a repeat of the 2008 crash (though he claims the slowdown in China is the biggest danger).
Maybe Soros is wrong, maybe the bubble will keep on inflating for a bit longer, but keep in mind that in 1992 he made a billion dollars by betting against the pound in what later came to be known as black Wednesday.
Soros doubles down on his bearish bet: http://blogs.marketwatch.com/thetell/2014/02/17/soros-doubles-a-bearish-…
Is the recovery over? : http://www.theguardian.com/business/2014/feb/23/has-uk-economic-recovery…
Soros and his billion dollar win in his bet against the British pound in 1992: http://en.wikipedia.org/wiki/Black_Wednesday
From The Guardian – This is no recovery, this is a bubble – and it will burst: http://www.theguardian.com/commentisfree/2014/feb/24/recovery-bubble-cra…
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