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June 12th 2008

Soros Bearish on Dollar

George Soros, one of the most well-respected investors who sits in the same echelon as Warren Buffet, just released his book on the current state of the world’s financial markets. His conclusion is that a "super-bubble" is forming. Connecting to all of the major financial markets, namely property, commodities, and equities, Soros outlines how the expansion in credit that has unfolded over the last 30 years has caused an unsustainable run-up in the prices of most investable assets. Due to the resulting inflation, investors are now fleeing en masse from mainstream securities and parking their money in commodities, triggering a super-bubble therein. With regard to the Dollar, Soros expects the currency to fall as the credit crisis runs its course and Central Banks gradually replace it with more stable currencies. CBC reports:

I think that the dollar is probably still, will emerge as the most widely used currency but the United State will have to abide by the limitations that are imposed on it by the willingness of the rest of the world to hold dollar reserves.

Read More: Bubbles building in financial markets

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Posted by Adam Kritzer | in Investing & Trading, US Dollar | 1 Comment »

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One Review of “Soros Bearish on Dollar”

  1. Fund Manager Says:

    All the “smart” money is bearish on the dollar. It’s not just Soros.

    Gross, Einhorn, Dalio, Seth Klarman – the list goes on and on.

    They have definitely positioned themselves for dollar weakness.

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