George Soros’ 13F might cause even the most brazen bulls to start to wonder if Soros thinks Armageddon is near. After a 5 year bull market in stocks, there is bound to be a correction some time. Given that Soros has increased his short position on the S&P 500 both quarters of 2014, and it is now a sizeable portion of his portfolio, investors who track Soros may well wonder if it is time to head for the hills.
“However, rather than piggybacking on Soros’ picks, it is a better idea to listen to his words. He is famous for saying, “The financial markets are generally unpredictable, so that one has to have different scenarios.”
These “different scenarios” may be his long bets in Facebook (FB) and Apple (AAPL). He can’t really think the entire economy is going to hell in a handbasket if he holds these stocks, which often get punished or rewarded along with the rest of tech. Soros did take profits in Teva (TEVA) Pharmaceuticals, but that may be because the stock has risen substantially and because it is no longer the leading name in generics with competing companies like Perrigo (PRGO) stealing some of its fire.
So guru mimics beware. In Soros’ own words, “The idea that you can actually predict what is going to happen contradicts my way of looking at the market.”