Bloomberg Business reports on the latest happenings on Wall Street and around the world, and George Soros is a $28 billion hedge fund investment mogul who has been active in the market for over 50 years. He claims that his firm gained 20 percent every year from 1969 to 2011 under his leadership. He first discovered he had a talent for investments in the 1950s, and it was soon discovered afterwards that people began to follow his financial advice, and he gained a stellar reputation. Mr. Soros watched the 2008 crisis come and go, and today he says that he is seeing some of the same characteristics in the global market.
Other experts say that the market is not that affected and has not gone that far yet, but Soros’s prediction are something to watch. In any case, if you are an investor or are planning to invest in the near future, here are five points to consider from Mr. George Soros.
1) The value of the yen is decreasing, and this currency is utilized over much of Asia including China.
2) Prices of gold have hit an all-time high at over $1,100. Gold is not the standard for American currency today.
3) The Chinese trade market has come to a halt twice in the past week, and Soros attributes that to China’s changing economy from investment and manufacturing to consumption and services. Over $2.5 trillion was lost in China this year.
4) The Chicago Board Options Exchange Volatility Index, which has become known as the fear gauge or the VIX, is up 13 percent.
5) The Merrill Lynch index of expected price changes in Treasury Bonds has risen almost six percent this year. Merrill Lynch is one of the largest investment firms in the country.
This is only the beginning of 2016, and Standard and Poor’s 500 index hit an all-time four-day low. This drop considered the declining yen in China and the rising gold market. Soros reports that he believes that this is an indicator that there is more trouble to occur in the near future. There has been a slide all over the globe, not to mention the Dow Jones Industrial Average here in the U.S., which wiped away 900 points.
If Soros is right in his prediction, then America would do well to take heed and begin some countermeasures to prevent a recurring of 2008. Before there are any more signs that indicate another crisis is on the horizon, it would be wise to consider the numbers that have already been revealed. Georg Soros is experienced and skilled in the area of financial investments and gauging the stock market, so his perspective is carrying weight among financial leaders.