According to the Wall Street Journal, the last time George Soros was actively trading stocks was in 2007. But Soros is back, and he has made a bet against the U.S. stock market. George Soros used a derivatives position to place that bet, and he increased his investments in gold at the same time by buying shares of Barrick Gold, the SPDR Gold Trust, and Silver Wheaton.
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George Soros and other top hedge fund investors have a pretty dim view of the global market. In fact, Soros has been predicting a global recession since 2012. His recent return to the trading table has people talking. Some investors believe Soros was right when he said that the world is not on the verge of a global recession; it is in process. It’s not a prediction anymore. It is a reality. The Soros family hedge fund is a $30 billion fund, and only family members are part of the fund. The Soros fund recently sold 35 percent of their stock holdings, and the fund increased its position in the gold market. Gold is the haven when a recession hits. The price of gold has jumped since the beginning of 2016 even though the U.S. stock market hit a record high. Many investors believe the stock market is artificially inflated, and the bottom could fall out any day.
George Soros – CNBC
That’s what Soros has been saying for months. He is basing his prediction on China’s bad debt situation, the European Union’s possible collapse, the UK leaving the European Union, and the migration and terrorist issues. The main catalyst, according to an article published by Forbes.com, is the China economic situation, and the fact that China is not transparent when it comes to releasing the real information. What Soros and other economists are saying is China’s government will be forced to use a large chunk of their capital reserves to keep their central bank solvent.
George Soros is betting that the Chinese will be forced to devalue their currency just like the Bank of England was forced to devalue the pound sterling in 1992. The Soros hedge fund made more than $7 billion when that happened, and Soros pocketed more than $1 billion in commissions. George and his hedge fund could make that much or more if the yuan is devalued.
The United States election will also play a role in the speed of the recession. According to Soros, Clinton is a better choice than Trump, but Soros has been a loyal Democratic donor for years. But Soros believes that no matter who wins, the recession is happening.