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George Soros
"Markets have been somewhat chaotic"
 real 28k

Friday, 16 June, 2000, 06:38 GMT 07:38 UK
Soros warns on tech stocks

Mr Soros is seen as the man who drove the pound out of the ERM
International financier George Soros has warned that technology stocks remain overvalued.

"In my opinion, they are overvalued. There has been a fantastic boom followed by an initial crash.I think there is a long period of drying out to come," he said on BBC's Radio 4.

"But in the meantime, there are some tremendous advances in technology. That is going to continue, so if you start early, you are closer to the ground floor," he added.

The controversial financier is credited as the man who drove Britain out of the Exchange Rate Mechanism and runs one of the world's largest investment funds, Quantum.

In recent months, he has seen his investments hit by the dramatic fall in technology stocks worldwide. Technology stocks have since recovered slightly but are nowhere near the highs seen earlier this year.

Calls for euro support

Separately, Mr Soros welcomed the recent rally in the euro. He also said that the European Central Bank should have intervened to support the euro.

"When the euro dropped below 90 cents, I think they should have intervened. I think markets like to be given direction. They need to know the central bank is there ready to defend the currency," he said.

Mr Soros has said that the UK's place is in the euro, but it should make sure it joins at the right time.

"Britain has made this mistake once, the wrong time at the wrong parity," he added.

New fund

On Thursday, Mr Soros said that his new flagship fund would avoid the spectacular but risky investments he has been known for.

The new Quantum endowment Fund, which will replace the Quantum Emerging Fund and the Quantum Funds, will start on 1 July. It will have assets of about $6bn.

"In my old days, I have become somewhat conservative," he said.

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See also:

29 Apr 00 | Business
Soros scales back
08 May 00 | Business
Soros: Euro may 'disintegrate'
06 Dec 98 | The Economy
The man who broke the Bank of England
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