Say It Ain't So Already

• Attack on Iran–by either the U.S. or Israel. An outside attack on Iran is very unlikely, Soros said. However, he thinks that the country’s present regime is not going to last the year.
• Gold reaches $2,000/ounce and rises. Soros does not think gold will reach $2,000. He said gold is the ultimate bubble; its price can go in either direction. It was the ultimate safe haven, but funds had to liquidate their positions to cover some loses in the stock market. On the other hand, Soros does not expect gold to retreat much and does not consider $1,000/ounce probable either.
• The polarization of the top 1% and the rest of the population leads to rioting in American cities. Soros said rioting is already happening in the U.S., but it is not getting much media coverage.
• On President Barack Obama’s re-election chances. Soros hedged his response, saying it depends on who the Republicans nominate. “Obama has a slightly better chance than most people because of the totally unacceptable character of the opposition.”
• Unemployment falling below 7.5% in U.S. Soros does not expect employment numbers to grow, but also noted that expiring unemployment benefits will push down the overall unemployment rate.

“At times like this is it more important to survive than to get rich,” Soros said at the end of the luncheon. “Since there are not many productive uses of money right now, it is time to take the long-view.” He suggested two potential plays: Think of undervalued stocks that will survive over long-term, and put the rest in cash.

Before I started reading the article I though his predictions would be much more dire.