Soros: U.S. may be in bear market

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Soros: U.S. may be in bear market

Associated Press Last Update: 1:20 PM ET May 4, 2000 Mutual Fund Center

LONDON (AP) -- Financier and philanthropist George Soros said today that the recent sell-offs in U.S. stocks probably constitute a bear market.

"We probably are in a bear market, only we don't know it yet. I think one has to position oneself accordingly," he told a group of journalists at the Association of American Correspondents in London.

Soros said he is keeping many of his investments in the form of assets that are easily converted into cash.

"We are very heavily liquid and rather happy with it," he said.

The Dow Jones Industrial average ($DJ: news, msgs) tumbled as much as 331 points Wednesday as interest-rate worries weighed on the market and investors punished companies that warned of slowing earnings growth. It was down 27 points in afternoon trading Thursday.

Soros suggested that U.S. markets could also be at risk because many brokers and traders are not old enough to remember the last time the economy suffered a severe downturn and prolonged recession.

He expressed mild surprise that so many investors and market professionals have maintained such a level of optimism despite the volatility of, and decline in, many U.S. stocks.

"The market today is dominated by much younger people who have not experienced a bear market," Soros said.

Despite his skepticism, he noted that retail investors are continuing to buy shares, particularly through mutual funds and in high-tech companies.

"I think the little guys are still coming in," he said.

Soros is not the only major investor to take a dim view of the recent frenzy in demand for shares in technology companies. Billionaire investor Warren Buffett said last month that he will continue to shun technology stocks even though they showed some of the biggest gains of any sector last year.

http://cbs.marketwatch.com/news/current/soros.htx?source=htx/http2_mw

-- - (x@xxx.cQm), May 05, 2000

Answers

No crap George what was your' first "tipoff"? Duh, Duh.

-- rowd morgan (morgan77@home.com), May 06, 2000.

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