It seems George Soros, not unlike pretty much all of the global establishment, has badly underestimated Trump and what he represents.
It’s becoming a costly mistake in more ways than one. Let’s hope this is just a foretaste for the Soros fortune.
The Wall Street Journal reports Thursday that billionaire left-wing financier George Soros lost nearly $1 billion as a result of Donald Trump’s victory in the November 2016 presidential election.
The Journal‘s Gregory Zuckerman and Juliet Chung report:
Billionaire hedge-fund manager George Soros lost nearly $1 billion as a result of the stock-market rally spurred by Donald Trump’s surprise presidential election.
But Stanley Druckenmiller, Mr. Soros’s former deputy who helped Mr. Soros score $1 billion of profits betting against the British pound in 1992, anticipated the market’s recent climb and racked up sizable gains, according to people close to the matter.
The divergent bets of the two traders are a stark reminder of the challenges even acclaimed investors have faced following Mr. Trump’s unexpected victory.
Mr. Soros was cautious about the market going into November and became more bearish immediately after Mr. Trump’s election, according to people close to the matter. The stance proved a mistake—the stock market has rallied on expectations that Mr. Trump’s policies will boost corporate earnings and the overall economy.
The “Trump bump” has lifted the Dow Jones Industrial Average over 1,600 points since Trump’s victory on November 8.
Trump has been relentlessly upbeat about how his policies are going to turn around the economy. Apparently, investors are taking him at his word.
Here’s a sample of his upbeat vision: