George Soros is one of the most successful hedge fund investors in the business. Soros has a history of making some incredible deals and piling up a sizable fortune in the process. The key to good investing is being right more than wrong, and Soros stands on the side of right. Forbes lists Soros as one of the richest people in the world, but he wasn’t always rich, and he is not always right when it comes to investing. Soros is a Hungarian-born refugee that escaped the Nazis during the war. He made his way to London, and he started waiting tables to eat. George was bright enough to be accepted to the London School of Economics, and he graduated with a degree in philosophy. He moved to New York in the 1950s and started working on Wall Street. Sixty years later,George Soros is a billionaire many times over and a philanthropist that promotes democracy and the open society principle around the world.
Soros has been very vocal about the future of the stock market. The Soros Fund has more than $3.5 billion invested in the market, but that number is 37 percent less than the 2015 number. George Soros believes China is going to throw the world into a major recession, and he is changing his portfolio to reflect that event. Soros recently purchased 19.4 million shares of Barrick Gold. Barrick Gold is the largest gold miner in the world. According to Bloomberg.com, Soros also purchased 2.1 million shares of put options on the SPDR 500 EFT Trust. That investment means Soros is betting that the S&P 500 will drop in value.
Read more: Billionaire Soros Cuts U.S. Stocks by 37%, Buys Gold Miner
Even though Soros has a great track record, there are still many investors that think Soros is overreacting to the Chinese economic situation. China still has more than $3.5 trillion in reserves and the government is smart enough control their spending. But George Soros thinks the Chinese banks are overextended with bad debt and the yuan is overvalued, The only way out of their economic mess is to use more capital reserves to protect the banks and the yuan. That will send shock waves through financial markets, according to Mr. Soros and the rest of the world will fall into a devastating recession.
Motley Fool also wrote an article about Soros and his gold fetish recently. That article reinforced the Soros economic belief to a degree, but there are investors that still doubt that the stock market is going to lose the value that Soros described in his various interviews. But one thing is certain. George Soros believes in gold, and that belief is enough for the gold market to increase in value regardless of what happens in the stock market. Read more at: http://www.forbes.com/sites/adamsarhan/2016/05/17/george-soros-sells-stocks-buys-more-gold-why-investors-should-care/#424edb785c39