George Soros And 1987: When Your Longs & Shorts BOTH Go Against You
I can relate to situations where all my positions went against me…and I’m sure some participants can relate to that as well YTD. So imagine the following scenario:
It’s 1987 and you’re the Quantum Fund:
- Soros’s team was up ~60% by the end of September, 1987
- Quantum was positioned short Japan but long the U.S. market.
- On October 14 Soros published an article in the Financial Times reaffirming his view that the crash would arrive in Tokyo.
- That day, followed by the 15th and 16th, US equities declined precipitously.
- October 19, went down in history as Black Monday. The Dow Jones index lost 22.6 percent of its value. Soros, having been short Japan (Nikkei...
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