George Soros latest trades could be an indication that the legendary billionaire speculator investor is positioning his portfolio for a possible U-shaped economic recovery, often referred to as the “Nike Swoosh” where the economy stagnates for a few quarters then moves upwards.
“George Soros latest trades could be an indication that the legendary billionaire speculator investor is positioning his portfolio for a possible U-shaped economic recovery”
WEALTH TRAINING COMPANY
In the current mid-pandemic era George Soros latest trades show buying activity in cyclical financials
Cyclical stocks are typically bought by investors in anticipation of an economic recovery.
George Soros, Soros Fund Management isn’t unloading financial stocks, instead, the Fund is slowly acquiring more banking stocks.
Last month, August 2020, Soros Fund Management added to its stock portfolio of Bank of America Corp stocks by +0.70%, the fund currently holds 1,188,255 shares, according to the Guru Portfolio Report, last dated August 14.
George Soros latest trades also show Morgan Stanley amongst the financials that the Soros Fund Management added to its portfolio by a similar amount
New stock buys in Morgan Stanley were up by +0.70% with current shares held in the US multinational investment bank at 582,263.
JPMorgan Chase & Co also registered a new buy, 0.60%, taking Soros Fund Management holding in the bank to 258,252 shares. Another financial institution, Citigroup Inc also clocked a new buy +0.65% with the fund’s total holding of 515,302 stocks in the bank.
“Cyclical stocks are typically bought by investors in anticipation of an economic recovery”
WEALTH TRAINING COMPANY
Other new buys in banking and financials include PNC Financial Services Group Inc, Bank of New York Mellon Corp, U.S. Bancorp, Wells Fargo & Co, Goldman Sachs Group Inc, and Truist Financial Corp.
In short George Soros latest trades indicates that the billionaire investor is not fearing a sell-off in banking stock
Admittedly, George Soros could also be hedging his financial positions by buying put options, which are bought when investors think stock prices are going to drop. But the CBOE Volatility Index is still below 30, at the time of my writing this piece, which suggests that investors are calm. However, central bank tightening too soon in anticipation of an economic recovery could also send the VIX shooting higher and trigger a panic sell-off, which could also jeopardize the economic recovery.
George Soros latest trades show Peloton Interactive Inc as the largest reduction in the fund’s portfolio, down 4.04% with the fund reducing its holding to 508,953 stocks
Peloton Interactive provides workout bikes for indoor cycling, as well as other fitness-related instruments.
Is George Soros anticipating no more future lockdowns? Perhaps it is yet another sign that the worst of pandemic 2020 is over.
A full and comprehensive list of George Soros latest trades see Guru, George Soros stock picks.