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Trading George Soros has been ....

Discussion in 'Shares' started by Tropo, 29th Jan, 2009.

  1. Tropo

    Tropo Well-Known Member

    17th Aug, 2005
    George Soros has been shorting sterling during its recent slide

    George Soros, the man renowned for "breaking" the Bank of England by selling the pound in 1992, has admitted he has been shorting sterling in recent months.

    Mr Soros said he foresaw the recent plunge in sterling, which has seen the currency undergo its worst devaluation since the end of the gold standard in 1931.
    However he said he has closed most of his sterling positions, in a sign that he no longer expects it to fall much further.
    Asked by The Daily Telegraph whether he agreed with his erstwhile investor colleague Jim Rogers that the pound was heading further down in the coming months, he said: "I did foresee the fall in sterling this year.
    "I did actually have a short position in sterling and it was one of the trades I carried out.
    But sterling did fall from around $ 2 to about $1.40 and at that level the risk-reward balance is no longer compelling. I'm not saying won't fall any more though - it will continue to fluctuate"
    Mr Soros also suggested that the IMF should use its own international currency - special drawing rights - to pump more cash into the global economy.
    It would be analogous to printing money - quantitative easing - on a global scale.
    Speaking at the World Economic Forum in Davos, Mr Soros also said he would be happy to start investing in the financial sector again provided governments created "good" and "bad" banks by isolating their bad assets.