Quarterly return in America show that the well-known, George Soros has doubled his bet that the will fall. Soros, who is known for betting against the British pound some years ago to make a cool $1bn has had a against the S&P for almost a year, but he recently doubled the size of that short.
Could he be right?
The S&P500 is aof the 500 largest trading on – and it obviously projects the current and expected in the US over the next year to 18 months. And the US economy is showing signs of very strong growth, with unexpectedly high and new housing starts and rising nicely.
The only thing scaringin the S&P is the possibility of another 0,25% hike in September – so why is Soros so sure that the S&P will fall?
The 86-year-old now ownson 4 million in an fund which tracks the S&P500 . His logic must be that: The S&P was in January 2016 and it is much more expensive now. Why else would he double down? Take a look at that S&P :
This shows the 7-year-oldin the S&P since April 2009. It has gone through a number of significant “wobbles”, especially over the crisis and over the last year it has moved and even slightly down. But about a month ago it broke up to new and it has been climbing ever since.
You will have to make up your own mind – but in our view, a protracted sideways movement like that whichto the , usually means a period of strong growth – and we are getting more and more excited by the evident growth in the US economy.
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