The Wall Street Journal reported that George Soros said he was confident that support for Britain to remain in the European Union would rise ahead of the June 23 vote.
Soros earned fame with a bet against the British pound in 1992, a trade that led to $1 billon of profits, in so called ‘Black Wednesday’. John Major was forced to pull sterling out of the European Exchange Rate Mechanism (ERM).
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Now he said recent strength in the British pound was a sign that a vote to exit the EU is less likely.
Soros told the Journal there remained a good chance that the European Union will collapse due to the migration crisis, challenges in Greece and a potential British exit from the EU.
Soros told the Journal:
“If Britain leaves, it could unleash a general exodus, and the disintegration of the European Union will become practically unavoidable.
I’m confident that as we get closer to the Brexit vote, the ‘remain’ camp is getting stronger. Markets are not always right, but in this case I agree with them.”
While betting odds have consistently indicated an In vote, opinion pollsters have so far painted contradictory pictures of how Britons will vote.
George Soros is back & is selling in Asia
Bloomberg said that the billionaire investor has become more involved in trading as he concerned about the the global economy sitioation and the risk that large market shifts may be at hand, according to a person familiar with the matter.
Soros Fund Management LLC sold stocks and bought gold and shares of gold miners last quarter, anticipating weakness in various markets, according to a government filing.
The philanthropist, 85 , who built a $24 billion fortune, in April said China’s debt-fueled economy resembles the U.S. in 2007-08, before credit markets seized up and spurred a global recession. “Most of the money that banks in China are supplying is needed to keep bad debts and loss-making enterprises alive, ” Soros said at the time.
In January, he said a hard landing in the Asian nation was “practically unavoidable, ” adding that such a slump would worsen global deflationary pressures, drag down stocks and boost U.S. government bonds.
Back to his U.S. stock investments last quarter, betting against the equities while banking on gold by more than a third. Soros Fund Management’s publicly disclosed holdings dropped by 37 percent to $3.5 billion at the end of March, according to a government filing in May, Bloomberg reports.
Reuters, Bloomberg and JBN reported
