For the record, I am not George Soros. It was merely a coincidence that I announced my longs in gold and gold miners on the same day as my dear friend, George.
Having said that, the most diabolical investor since Jay Gould, the King Maker, George Soros is out with bearish views tonight, in a Wall Street Journal interview.
Amongst his chief concerns are China’s capital flight, Europe’s migrant crisis, BREXIT, just to name a few. He’s sopping up gold and gold miners, as well we taking derivative bets against stocks.
“China continues to suffer from capital flight and has been depleting its foreign currency reserves while other Asian countries have been accumulating foreign currency,” Mr. Soros said. “China is facing internal conflict within its political leadership, and over the coming year this will complicate its ability to deal with financial issues.”
Mr. Soros worries that new troubles will arise in China partly because he said the nation doesn’t seem willing to embrace a transparent political system that he contends is necessary to enact lasting economic overhauls. Beijing has embarked on overhauls in the past year but has backtracked on some efforts amid turbulent markets.
Some investors are beginning to anticipate rising inflation amid recent wage gains in the U.S., but Mr. Soros said he is more concerned that continued weakness in China will exert deflationary pressure—a damaging spiral of falling wages and prices—on the U.S. and global economies.
Mr. Soros also argues that there remains a good chance the European Union will collapse under the weight of the migration crisis, continuing challenges in Greece and a potential exit by the United Kingdom from the EU.
“If Britain leaves, it could unleash a general Exodus, and the disintegration of the European Union will become practically unavoidable,” he said. Still, Mr. Soros said recent strength in the British pound is a sign that a vote to exit the EU is less likely.
“I’m confident that as we get closer to the Brexit vote, the ‘remain’ camp is getting stronger,” Mr. Soros said. “Markets are not always right, but in this case I agree with them.”
Other big investors also have become concerned about markets. Last month, billionaire trader Stanley Druckenmiller warned that “the bull market is exhausting itself” and hedge-fund manager Leon Cooperman said “the bubble is in fixed income,” though he was sanguine on stocks.
Mr. Soros’s bearish investments have had mixed success. His firm bought over 19 million shares of Barrick Gold Corp. in the first quarter, according to securities filings, making it the firm’s largest stockholding at the end of the quarter. That position has gained more than $90 million since the end of the first quarter. Soros Fund Management also bought a million shares of miner Silver Wheaton Corp. in the first quarter, a position that has increased 28% so far in the second quarter.
Meanwhile, gold has climbed 19% this year.
But Mr. Soros also adopted bearish derivative positions that serve as wagers against U.S. stocks. It isn’t clear when those positions were placed and at what levels during the first quarter, but the S&P 500 index has climbed 3% since the beginning of the second period, suggesting Mr. Soros could be facing losses on some of those moves.
Sleep tight longs.
If you enjoy the content at iBankCoin, please follow us on Twitter
I thought you hated gold? I recommend west Africa miners. Tgz, edv, rog are my favourites. Rog should have huge bump tomorrow morning.
Read my previous posts
Any chance you could do a dedicated post on gold? Price predictions. $1400 by years end or much higher?
Gold @ $1400 by the end of summer.
If only the mr. Soros knew how to tweet. Here is your fleece vested cape Dracula George. Frog silver lined it.
Thanks, Moosh, for awarding Soros his fleece vest. It’s good to have someone working with me on this. There are so many Devil Dogs around lately to award silver lined fleece vests to. The fleece vest distributors’ work is never done.
frog. Okay. The fucking stock market prices have nothing to do with anything. Let alone your king and queen delusions. Begging for a good tape as a liberal is disgusting. You will never get what you want if the tape does not tank. Think.
I am not begging for a good tape. President Hillary will make the tape good by paying more attention to the needs of the middle and working classes. They’ll rebuild our crumbling infrastructure and then will spend their wages in ways that increase the earnings of many companies, which will then hire new workers. Perhaps you are thinking Trump will too if he wins. Either one would, because this is an idea whose time has come.
I am thinking, but am coming up with different opinions that you. There is room for more than one opinion in the world.
Good luck kid. You know nothing but that is okay. You seem honest enough. Hillary is your enemy. Destroyer of all your dreams.
“Hillary is your enemy. Destroyer of all your dreams.”
Agreed, but so is Trump.
Show me one example where Trump has done anything not in his own self interest. I suggest you look at his tax plan and see who benefits more: the middle calss or the 1%ers/
So, this is the top on gold?
Looks like it, doesn’t it? At least to contrarians, seeing all the interest in gold.
This is just the beginning. Currency crisis is around the corner.
This is the top on lez and trannie and homo. Welcome to 2016.
HA-HA
word on that
bird
Insane amount of bearishness for a market that has acted strong in the last couple of weeks.
My prediction if brexit doesn’t pan out – yields are going to rocket and fed is going to raise rates. All that money is going to go into the market. The commodities are already gearing up for inflation. I just don’t see gold going higher if brexit doesn’t happen.
The Devil Dogs will cry if you are right.
Panda–you obviously have never seen the memo that some of the strongest rallies occur during bear markets. We’re just getting started, bubba. Give it a year and report back how bullish you are then.
Brexit will not happen. People are wasting their breath even discussing it. The Fed will not raise interest rates in your lifetime, and the market is about to drink your milkshake. We’re talking about major drainage, Tea Pot Dome-style.
G. Soros broke the Bank of England. I think he can handle your silver lined fleece vest from his citadel in Katonah, NY
True. He can handle it. He usually wins, but even the best traders don’t win every single time. So when he loses in his short bets, when President Hillary ushers in a new era of growth, then he has made plenty enough money to be able to withstand the losses in his short positions.
“But Mr. Soros also adopted bearish derivative positions that serve as wagers against U.S. stocks. It isn’t clear when those positions were placed and at what levels during the first quarter, but the S&P 500 index has climbed 3% since the beginning of the second period, suggesting Mr. Soros could be facing losses on some of those moves.”
Years ago, George used to work for Arnhold & Bleichroeder along with Jim Rogers, before they left to start the Quantum. George was an asshole back then. Once an asshole, always an asshole.
Took a position in SWHC today. Guns are going to be very important to people when this shit comes down. SWHC is on sale!
Don’t ignore OLN. Gotta have ammo!
my god damn favorite celebrity investor.
I am not convinced that pm bull move is on yet. I am still of the opinion that helicopper money will come after the credit default move. I am of the opinion that germany will not allow helicopter money before a crash. Printing before crash will only make things worse and the fed knows it.