Authorization

Legendary investor George Soros says the stock market is trapped in a Fed-fueled liquidity bubble

Legendary investor George Soros says the stock market is trapped in a Fed-fueled liquidity bubble
Reuters



The stock market's rally is trapped in a Federal Reserve-formed liquidity bubble, billionaire investor George Soros said in an interview with Italian publication La Repubblica.




Valuations rest on hopes for a second fiscal stimulus bill and President Trump announcing a coronavirus vaccine before election day, Soros added.




The legendary investor advised investors to assume fallibility and reflexivity in markets, as participants' worldviews "are always incomplete and distorted."




Visit the Business Insider homepage for more stories.




The Federal Reserve's monetary relief flooded markets with liquidity but prices now rest on shaky foundations, according to billionaire investor George Soros.
Stocks' lofty valuations are underpinned by hopes for a second round of fiscal stimulus and the expectation that President Donald Trump will announce a reliable coronavirus vaccine before the presidential election, Soros said in an interview with Italian publication La Repubblica. The next spending bill would need to eclipse the CARES Act's $2.2 trillion sum to meet investors' expectations, he added.
Concerns of the Fed's actions forming a market bubble "hit the mark," Soros said in the interview published Tuesday, adding that the central bank has been "more successful than President Trump" in buttressing markets.
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Сентябрь 2020    »
ПнВтСрЧтПтСбВс
 123456
78910111213
14151617181920
21222324252627
282930