Soros @ HKU: On Market Bubbles

Hong Kong – George Soros said financial bubbles are not  totally irrational, and investors can spot them early. “In the late nineties, during the internet bubble, I shorted some internet stocks after they broke,” he said, adding that the sector actually entered another high shortly afterward. “It’s rational to participate in an incipient bubble,” he said, adding he would try to sell long before the market tops.

“There is no recipe for getting the market right,” Soros acknowledged. “You can see bubbles early, and guess the direction they will take. But you cannot predict how far they will go. That I learned from bitter experience,” he said.

When asked for advice on which bubbles to invest money right now, Sores said, “I’m happy to say I am retired.”