I’m not a big fan of Soros when it comes to politics and have no idea how his hedge funds have done in the last few years. That said, I found his comments in a recent inteview with the UK Daily Telegraph interesting…
Speculators are largely responsible for driving crude prices to their peaks in recent weeks and the record oil price now looks like a bubble, George Soros has warned.
and the bubble will be pricked by recession in the US and the UK…
However, Mr Soros warned that the oil bubble would not burst until both the US and Britain were in recession, after which prices could fall dramatically.
“You can also anticipate that [the bubble] will eventually correct but that is unlikely to happen before the recession actually reduces the demand.
In the interest of full disclose I should state that I am in two separate trading systems that are invested primarily in oil and oil service stocks. One system will exit oil stocks the last trading day of May and go to cash ( that would be the 30th). The other is a relative strength type system and will remain in oil stocks until another sector becomes stronger.
