Is it time to become totally panicked about the current global economic outlook? Perhaps panic isn’t the right response, but according to market guru, hedge fund owner, philanthropist and multi-billionaire George Soros, concern is definitely appropriate.
Soros is a man who know the markets and who is well known for predicting trends accurately, which is why investors listen when Soros speaks out. Right now, Soros is predicting continual shakiness in the markets, and he advises investors to proceed with extreme caution for the foreseeable future.
Right now, Soros is dealing with a loss of 37 percent (down to 3.5 billion) in his Soros Management holdings. He’s also taken his investments in U.S. stocks down to one third of what they once were. All of this is clear evidence on https://www.project-syndicate.org/columnist/george-soros that the markets are looking shaky, and wise investors must keep their wits about them to avoid serious losses.
George Soros is also betting against equities right now, and he is feeling bullish about gold. As of May 2016, Soros says that his “largest currency allocation” is in gold.
2016 has been a shaky year for the markets from the outset, with the new year getting off to a harrowing start with a major crash followed by another and then another. Global equities lost trillions in value in the early part of this year, and the year is far from over, which is a sobering thought to be sure.
Where does all this instability come from?
According to George Soros, the situation in China, as the economy switches from one that is manufacturing based into one that is more focused on consumerism and service, is at the core of the current shakiness. China is having a difficult time finding its way in this transition, and the problem is sending the yuan into a downward spiral. Despite the best efforts of the Communist government in China, as well as the banks, the losses continue, and they are affecting the economy globally. Read more on nytimes.com
What should market watchers do in the current climate? Until things calm down in China and in the rest of the markets, Soros will continue to stress extreme caution for investors. Read more on http://www.investopedia.com/university/greatest/georgesoros.asp