Leftist George Soros is known for crashing currencies all over the world. Now, Soros is betting big on a US stock market crash by an increased a bear-call bet on the S&P 500. Soros may know something that the rest of us don’t. We all known that the stock market is currently artificially inflation from the Federal Reserve. The stock market is the next bubble to burst, but when will it happen? Seems Soros is ready for the bubble to burst.
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| George Soros betting big on stock market S&P 500 crash |
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mong the highlights, Soros Fund Management increased a bear-call bet on the S&P 500 in a huge way. The fund lifted a put position — a bet the market will go lower — on the S&P 500 ETF SPY -0.17% to its biggest size yet, in terms of value and portfolio percentage, making a 605% leap over the previous quarter.
Bullion Baron, who has long kept a beady eye on Soros’s SPY moves, has summed up the latest dealings. He speculated that this could be a hedge — or Soros is really worried about something. One possible something is China, which the hedge-fund titan referred to as a global uncertainty earlier in the year, notes the Baron.
Soros also lifted positions in Apple and Facebook and a portfolio loaded up with stocks, so he can’t possibly be all that gloomy. As for that China unease, WSJ’s MoneyBeat reports that China bears are entrenched and see stocks headed for a big fall. One strategist says it’s not good to see that stocks there have been rallying on both good and bad economic news.
“In [a] market frenzy, it is difficult to keep a cool head. But if things don’t add up, it will eventually fall apart,” Hao Hong, Bank of Communications international strategist, tells MoneyBeat.
Now the only problem here, says the Baron, is that if things go pear-shaped in China, that’s not great news for equity markets anywhere, especially those at overvalued levels. Just a reminder, the 13Fs are from the second quarter so for all we know Soros has changed his mind completely since then.