New York (HedgeCo.net) – It is hard to argue with one of the most successful hedge fund managers in history, so when you learn that George Soros is shorting the S&P 500 and buying U.S. treasuries, it should serve as a warning.

Soros founded the Quantum Endowment Fund and according to a recent article on the Nasdaq’s website, it is the second most profitable hedge fund in history by experiencing net gains of $42.8 billion since inception. According to the article, the only fund that has experienced a greater gain is Ray Dalio’s Bridgewater Pure Alpha Fund with net gains of $45 billion since inception.

Given Soros’ status, you have to respect his opinion. When he revealed in an interview with Bloomberg at the World Economic Forum in Davos that he was shorting U.S. stocks via the S&P 500 and buying treasuries, investors should take notice. This is advice from the man that called the devaluation of the British Pound, the rise in Deutschemark and the collapse of the Japanese stock market during the 80s and 90s.

In addition to being bearish on U.S. stocks and bullish on treasuries, Soros is bearish on Asian currencies and countries that are heavily reliant on raw material production.

Rick Pendergraft
Research Analyst
HedgeCoVest