According the Wall Street Journal, noted investor George Soros is back to shuffling money about different companies, and the choices he’s made is challenging speculators’ outlook for the market’s immediate future.
It’s more reactionary than anything. The Soros Fund Management, his private office that manages his won wealth and that of his immediate family, has made investments that seem to be in response to recent troubles in the European Union and China. Soros has been rather outspoken against these two economic heavyweights. In his estimation, these two are a source of great financial frustration as they continue to negatively influence global markets through currency manipulation and ineffective policy.
Some of the more curious positions recently taken has been in precious metals. The Soros Fund Management has dumped $19 million in the Barrick Gold Corporation, placing them in the position of largest shareholder. In a small window, this investment has grown to $90 million by the end of the previous quarter. Another source of precious metal this office has acquired comes from the Silver Wheaton Corporation. Their investment there has also increased, by an approximate 28%.
The turn to precious metals like gold and silver is often an indicator that something troubling is coming for global markets, and that’s precisely what Soros has been vocal about in the past year or so concerning what’s going on in China and Europe.
At several speaking engagements, Soros has stated that China’s current allocation of debt and manipulation of currency echoes positions the US took just before the great credit crunch which triggered the global recession of 2007-2008.
The Greatest Investors: George Soros
In the short term this has lead to a mass exodus of cash from the country, which can negatively affect currency reserves in partnering Asian countries. And there seems to be little in the way of cooperation among Chinese politicians to stop it.
These decisions is placing China on a path that could lead to a national crash that spills over and effects global markets, sending stocks in the US downward.
As for the European Union, an influx of refugees continuing to come from the Middle East, including infighting from radicalized nationals and an resurgence of rightist politics, is taxing the member nations’ ability to afford the political and financial cost. When discussing the UK’s then possible exit from the EU, Soros thought it the beginning of their dissolution as a singular economic entity. And though there have been talks of other nations having to quell talks from members in their respective governments about leaving the EU, Soros argues that the union is stronger together than the nations operating on their own.
As for Soros, precious metals seem to be the safe bet for the present, promising greater returns on investment that other commodities relying on unstable policy.
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