George Soros, the philanthropist, and Hall of Fame hedge fund investor, has been warning the world that another crippling recession is the making. The signs of another global recession are hard to ignore, according to the multi-billionaire. Europe’s economy is in bad shape thanks to an enormous amount of debt, the migration crisis, and the European Union. The EU is not a united group, according to Soros. Soros has been vocal about China’s economic issues on http://www.forbes.com/profile/george-soros/, and he believes the Chinese are going to be the main force that pushes the rest of the world into a recession that will rival the 2008 meltdown.
For the most part, the Hungarian-born philanthropist is focused on his foundations that stretch around the globe and promotes the open society concept, but he still has time to manage his $24 billion fortune. It looks like he is making some changes in how that fortune is going to work for him this year. The legendary George Soros hedge fund’s value dropped by $3.5 billion the first three months of 2016, and Soros is making adjustments that include a 1.05 million share investment in the SPDR Gold Trust. Soros also took a stake in Barrick Gold Corporation which is the world’s largest producer of gold.
The interesting fact about the Soros Fund is that George gave all the investors their money back five years ago, and now, the fund only invests Soros money. George Soros is the only investor in the Soros hedge fund, and he wants to keep it that way. It appears Soros is ahead of the investment curve once again. According to Bloomberg.com, the value of gold went up by 16 percent in the first three months of 2016. That’s the biggest value jump in any quarter since 1986. Barrick’s shares doubled in value in the first quarter of 2016.
George Soros is selling stocks like Dow Chemical and Delta Airlines and reinvesting that money in gold, and he has also been vocal about his plan to short-sell the Chinese yuan. Soros made a name for himself in the investment world when he decided to short the pound sterling in 1992. That bet paid off big-time for Soros. He made more than $1.4 billion when his fund made $7 billion when the British devalued the pound sterling. The art of short-selling became popular thanks to Soros. In fact, many of his investment tactics have been copied by other hedge fund managers because they work.
The truth is, George Soros knows what he’s talking about when it comes to the economic health of the world and the United States. Another Soros prediction is, the U.S. economy is slowing down, and it is in danger of going into a contraction mode in 2017. Read more at http://www.nybooks.com/contributors/george-soros/