Tag Archives: Volatility

George Soros on Financial Markets

In this valuable video, George Soros shares his lifetime learnings on Financial Markets. Some of the key messages are:
1. In business cycles, Earnings (EPS) rise will lead Valuation(P/E) rise, and Earnings (EPS) fall will lead Valuation(P/E) fall because investors tend to extrapolate the present into the future.
2. Whatever is known to the majority, can not create profits (competitive advantage).
3. Markets discount all the known things. The profits are in the unknown (events of the future), which are not yet discounted by the market.

George Soros on Financial Markets – Q&A

While this video is 5 years old, the content is still very relevant, and some of the implications and projections by George Soros have actually come true in last 5 years. The key point to note is that George Soros does not accept/agree with the Efficient Market Theory. While we can’t predict the future, it is possible to create scenarios and test them against the events as they unfold.

Open Society Foundations chairman and founder George Soros shares his latest thinking on economics and politics in a five-part lecture series recorded at Central European University, October 26-30, 2009. The lectures are the culmination of a lifetime of practical and philosophical reflection. Continue reading