For most investors, the global economy has come a long way from distressed financial conditions experienced in 2008. Perhaps, existing conditions are ripe for investment. However, the re-entry of billionaire George Soros in the investment circles is not a good sign for investors who are keen to invest in their future. Those who are aware of the name know that billionaire George Soros is known for successful bearish predictions. For instance, in 2007, people took notice when the billionaire invested in bearish stocks at the height of investment boom. Soon, the markets turned bearish netting George Soros nearly $1 billion in profit.
For someone who has invested nearly $30 billion in his own fund, Soros Fund Management Inc., gaining $1 billion is nothing remarkable. Instead, what makes George’s predictions remarkable is the success of such predictions. According to the family sources close to George Soros, the billionaire is once again taking a keen interest in directing his investment funds. It is noticeable that George Soros did not actively directed his investments after 2008 as he moved towards philanthropic and political activities. His return and investment in bearish financial assets may be a sign of global distress in the near future. In addition, source also claim that Soros has started investing in precious metals, which is yet another indication of the confidence in his actions.
According to analysts, George Soros thinks that that slow economic growth of China coupled with problems in the European Union are enough to apply breaks to the current recovery. He strongly believes that the Chinese government and other local political parties are not interested in tackling the depleting foreign reserves of China. In fact, China is the only major Asian economy that is not doing enough to safeguard its foreign reserves. On the other side, European Union is also facing huge troubles in tackling immigration crisis. The recent exit of Britain may also be the first sign of disintegration among other members.
Interestingly, recent moves by George Soros to invest in precious metals proved his theory that investors are looking to safeguard their interests by investing in Gold and Silver, instead. A recent investment in Barrick Gold Corporation netted George $90 Million in the first quarter. Similarly, he profited 28 percent from investing in Silver Wheaton Corporation in just six months. If the trend continues, George Soros may offer more surprises for financial pundits.
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