Friday, July 3, 2009

How to Time the Market

George Soros is the founder of Quantum Fund. He is currently the Chairman of Soros Fund Management. He is credited with the phrase "the man who broke the Bank of England." in a massive currency market play in which his hedge fund won big.

He also wrote a book "The Alchemy of Finance" where he discusses the idea of Reflexivity and the inherent instability of financial markets. In his view financial markets are based upon self reinforcing systems and that causes markets to move in unpredictable manner. He proposes strict regulations to stamp out the extreme volatility in financial markets.

In this video he talks to WSJ Deputy Managing Editor Alan Murray about market instability and the difficulty of the investors face in making sound investments.

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