George Soros makes a big bet against stocks
Does the billionaire investor know something the rest of us don't?
Oh, goody. It’s 13F time, when mere mortals like us get to see how the big boys rolled the dice in the last quarter.
Among the highlights, Soros Fund Management increased a bear-call bet on the Standard & Poor's 500 Index ($INX) in a huge way.
The fund lifted a "put" position -- a bet the market will go lower -- on the S&P 500 ETF (SPY) to its biggest size yet, in terms of value and portfolio percentage, making a 605 percent leap over the previous quarter.
Bullion Baron, who has long kept a beady eye on George Soros' (pictured) 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 (AAPL) and Facebook (FB) 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.
In the short term though, it seems global managers are willing to place their bets on Wall Street. What IG's Chris Weston hears among some institutional funds, he says, is that with Europe pinned down by Russian worries and growth problems, most think U.S. stocks are a pretty good bet, at least for the short term -- three to six months.
"From a relative-growth perspective, the U.S. is significantly outperforming Europe, corporate earnings have been good. From a geopolitical standpoint . . . where do you go to invest right now, with bond yields so low? The belief is that the U.S., on a relative basis, is going to outperform," says Weston.
He says if you'd asked him three months ago what his biggest worry was, he would have said a 10 percent drop for the S&P 500, due to a major rise in 10-year bond yields. "That's clearly not going to happen anytime soon," he says.
Recent data from Bank of America Merrill Lynch data shows fund money poured out of Europe in this week, into Japan and China, with modest flows into the U.S.
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Figures he'd lay a big bet against America, he's a democrat that supports Obama. Support an incompetent, get him in charge, and then bet the farm against him...
A true democrat...
Those that have the most success don't make a bunch of excuses to why or why not. They just get it done. Everyone else just watches. Figures how some folks read every part of the article but this sentence.
"Soros also lifted positions in Apple and Facebook and a portfolio loaded up with stocks, so he can't possibly be all that gloomy."
He knows what everybody knows. Our government is totally corrupt and doesn't give a flip what the people think or want. And that the people have zero control over what the government does. And that the government is propping up asset values, (they've almost got them back to the previous bubble level) and if they ever stop... poof they all drop 50 to 60% immediately.
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