Soros Fund Management increased his short position on the S&P 500 from 2.96 percent of the portfolio to 16.65 percent, making it the biggest single portion of everything George Soros is managing. All in all, the hedge fund manager increased this short position all the way to $2.2 billion.
S&P 500 Overvalued
Trading at record highs
Historic average P/E 15.15 and currently trading at 19x earnings.
Is 22.3% overvalued based on its 134 year historic average of 15x
Based on CAPE the S&P 500 is selling at 26.11x earnings.
CAPE 134 Average is 16x earnings, that means the S&P 500 is overvalued by 57%.
S&P dividend yield is currently 1.85% and its 134 year historic average is 4.32%
Soros also doubled his ownership in Gold ETF stocks, which can be influenced by the value of the U.S. dollar. Goldman Sachs, on the other hand, believes gold prices could drop to $1,050 per ounce in 12 months.
Essentially, this could mean that Soros believes the U.S. stock market could tumble and is hedging his bets.