Rebound May Be Temporary, says Soros

Filed in archive Hedgetalk on May 26, 2008

© Dale Gillard

Also on the downside, hedge fund billionaire George Soros said that the current rebound in stock markets is only a bear market rally.
According to Reuters, Soros told a seminar at the London School of Economics, "The prevailing market opinion is that this crisis is like previous ones. ... Markets have been rallying on that. But I think it's actually just a bear market rally based on a false conception the authorities can handle all these crises"

"This time the ability of the authorities to handle the crisis is constrained - they'll not be able to avoid a recession...Certainly the idea that the economy is going to recover (at the end of this year) is totally unrealistic," he said.