Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Five Reasons to Listen to George Soros

By

And why interpreting his position as bullish is almost certainly a mistake.

PrintPRINT
Billionaire investor George Soros thinks the worst of the global financial crisis is behind us.

In a June 20 interview with Polish television, the Hungarian-born Soros acknowledged that this has been the most serious crisis he's seen in his lifetime, but said that: "Definitely, the worst is behind us."

For those who like to interpret "Soros-speak," that's as powerful a sign as any that Soros -- one of the world's most successful investors -- is "going long."

But is he wrong?

On the one hand, the World Bank's busy roiling the markets with recently updated figures that project a 2.9% decline in global economic activity this year. Then there are the signs that the green shoots (how I've come to detest that term) may be more like weeds. Debt's devastating the developed world, and the once-mighty G-7 looks more like a G-1 every day.

On the other hand, I wouldn't bet against him. When it comes to financial influence and acumen, Soros is about as powerful and prescient as they come. He's made billions over the years speculating on things that others simply couldn't see -- or, more often, didn't want to see. He's legendary for making big bets on market timing, even if, by his own admission, he isn't always right.

For the millions of investors tempted to interpret Soros' comments as bullish, I urge caution. In fact, this advice applies to any comments that might be made by such investment legends as Warren Buffett, or even Soros' former investment partner, noted author and commentator Jim Rogers.

I preach caution for 3 reasons:

1. Despite the fact that each of these men is fabulously successful, the typical retail investor has no idea how much money they're betting on the upside, or what percentage of their wealth is involved in any publicized position.

2. It's not clear what -- if any -- protective stops are being used, so you don't know whether the positions they've taken represent core portfolio holdings or speculative trades.

3. These revelations -- disclosures, really -- are usually made after the fact, which means that investors who may want to tag along for the ride are put in the risky position of having to make "me too" investments.
< Previous
No positions in stocks mentioned.
Fifteen trades. All profitable. Since launching his Geiger Index trading service late last year, Money Morning Investment Director Keith Fitz-Gerald is a perfect 15 for 15, meaning he's closed every single one of his trades at a profit. And he did this during one of the most volatile periods for the U.S. stock market since the Great Depression. Fitz-Gerald says the ongoing financial crisis has changed the investing game forever, and has created a completely new set of rules that investors must understand to survive and profit in this new era. Check out our latest insights on these new rules, this new market environment, and this new service, the Geiger Index.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE