The financial markets generally are unpredictable. So that one has to have different scenarios⦠The idea that you can actually predict what's going to happen contradicts my way of looking at the market.
On September 16, 1992 β a date forever branded as Black Wednesday β George Soros and his Quantum Fund short-sold $10 billion worth of British pounds, single-handedly forcing the UK out of the European Exchange Rate Mechanism and pocketing an unfathomable $1 billion in profit in one day.
Identified the pound was dangerously overvalued within the ERM. Began accumulating a massive short position in secrecy.
Launched $10 billion worth of pound shorts as Black Wednesday unfolded. The Bank of England scrambled.
The pound crashed 14.7%. The Bank of England surrendered. Soros pocketed $1 billion β the greatest trade in history.