What George Soros' Quotes and Stock Holdings Say About the Future
George Soros is back, and that's not a good sign for the global economy.
Jay Jenkins
(TMFJayHJenkins)
Jun 14, 2016 at 10:41AM
Billionaire George Soros sees an economic storm gathering. Image source: Flickr/Carl Milner.
George Soros doesn't like what he sees in today's global economy. The billionaire investor, who is estimated to have a $25 billion net worth, has made his position clear this year in quotes, stock picks, and other portfolio holdings. He thinks the economy is in trouble, and he's putting his money where his mouth is.
To understand what he's doing and why, let's break down what he's said about today's market and how he has positioned his fund to capitalize on these trends.
George Soros' quotes present a clearly bearish worldview
The last time George Soros took an active role in the day-to-day trading at his firm, Soros Fund Management LLC, was in 2007. At that time, he stepped in to bet against the housing market, a move that would eventually net the firm over $1 billion in profits at a time when the rest of the financial system teetered on the edge of collapse.
His views today are once again bearish, though this time he sees problems coming from abroad, rather than at home. The biggest problem, in his view, comes from China. He told The Wall Street Journal: "China continues to suffer from capital flight and has been depleting its foreign currency reserves while other Asian countries have been accumulating foreign currency. ... China is facing internal conflict within its political leadership, and over the coming year this will complicate its ability to deal with financial issues."
More tangibly, Soros sees Chinese problems as a catalyst for deflationary pressure that could spread around the world, causing havoc in all major economies.
ABX data by YCharts
Can Barrick Gold continue its climb? Will Soros' negative expectations come to fruition, sending the S&P lower? It's impossible to know. However, Soros track record speaks for itself, and if nothing else, investors should remain vigilant.
What George Soros' Quotes and Stock Holdings Say About the Future -- The Motley Fool
George Soros is back, and that's not a good sign for the global economy.
Jay Jenkins
(TMFJayHJenkins)
Jun 14, 2016 at 10:41AM
Billionaire George Soros sees an economic storm gathering. Image source: Flickr/Carl Milner.
George Soros doesn't like what he sees in today's global economy. The billionaire investor, who is estimated to have a $25 billion net worth, has made his position clear this year in quotes, stock picks, and other portfolio holdings. He thinks the economy is in trouble, and he's putting his money where his mouth is.
To understand what he's doing and why, let's break down what he's said about today's market and how he has positioned his fund to capitalize on these trends.
George Soros' quotes present a clearly bearish worldview
The last time George Soros took an active role in the day-to-day trading at his firm, Soros Fund Management LLC, was in 2007. At that time, he stepped in to bet against the housing market, a move that would eventually net the firm over $1 billion in profits at a time when the rest of the financial system teetered on the edge of collapse.
His views today are once again bearish, though this time he sees problems coming from abroad, rather than at home. The biggest problem, in his view, comes from China. He told The Wall Street Journal: "China continues to suffer from capital flight and has been depleting its foreign currency reserves while other Asian countries have been accumulating foreign currency. ... China is facing internal conflict within its political leadership, and over the coming year this will complicate its ability to deal with financial issues."
More tangibly, Soros sees Chinese problems as a catalyst for deflationary pressure that could spread around the world, causing havoc in all major economies.
ABX data by YCharts
Can Barrick Gold continue its climb? Will Soros' negative expectations come to fruition, sending the S&P lower? It's impossible to know. However, Soros track record speaks for itself, and if nothing else, investors should remain vigilant.
What George Soros' Quotes and Stock Holdings Say About the Future -- The Motley Fool
