The stock market performs many functions such as the allocation of capital to business enterprises. It’s also often used as one gauge of the health of the economy. But another job it does exceptionally well is humble the proud and make fools out of those who claim to know too much. It’s this latter characteristic that has liberated fortunes from some and reallocated it to others.
America is a nation filled with stock market watchers which doesn’t come as a surprise. What our grandparents and great-grandparents wouldn’t touch because they lived through the Great Depression, people today entrust their entire retirement portfolios to. And it’s no wonder since savings accounts and bonds earn almost nothing.
What is interesting about the stock market is its ability to fool both the big guys and the small investors. Those who think they have it figured out often get clobbered. The old joke has some validity: “Want to know how to become a millionaire in the stock market? Easy. Just start out as a billionaire.” It’s an appropriate comment right now as one well-known billionaire just lost $1 billion in the stock market.
Mention the name George Soros and millions of Americans see red. The billionaire investor has rarely seen a far left cause that he hasn’t been willing to fund. A confirmed globalist and advocate of a one-world-government, he is a menace to our freedoms. He also not only bet wrong by backing Hillary, but he also took the wrong side of the market after Trump won. This latter error turned out to be a $1 billion mistake.
The Wall Street Journal reports that, “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.”
So Soros went short the market as a result of Trump’s victory, setting himself up to profit on the decline in the market that he expected. The problem for Mr. Soros was that the market had other ideas.
Continuing: “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 stock market just performed one of its jobs magnificently – making a fool out of someone who thought he had it all figured out.
Let’s not also forget that Mr. Soros donated A LOT of money to the Democrats, which did NOTHING for them this election cycle. So there’s even more lost than this stock market wager.
Don’t feel too sorry for Mr. Soros, though. Even though his portfolio took a $1 billion hit from this error, it still turned a 5% profit for the year. So, unfortunately, Mr. Soros still has plenty of money to create mischief for the conservative cause. At least for now.