George Soros is the founder and the current chair of Soros Fund Management. He has been involved in speculating bonds market and currency market in short-term speculation to make huge bets on the directions of the financial markets. According to Him, financial markets are all chaotic primarily because the prices of currencies and securities are determined by human beings and the decisions made by the traders in these markets.
George Soros believed that market participants influence one another and appear to be moving in herds. George Soros says that most of the time he moved with the crowd but always looking for an opportunity to get out in front to “make a killing.” The question is, how did he tell when the time was right to make a killing? According to him, he has an intuitive physical reaction about when to buy and sell making it hard to verify his prediction and a difficult model to emulate.
When Soros retired his financial career in 2000 on https://www.project-syndicate.org/columnist/george-soros, he then spent about 20 years speculating with billions of other people’s money which resulted in making them and him very wealthy through his highly successful Quantum Fund. He was not right every time he placed a bet, but his net results were highly profitable making him one of the world’s wealthiest investors in history.
George Soros has written various books about finance and wealth such as “The Alchemy of Finance” in 1988, “Soros: The Life and Times of a Messianic Billionaire,” by Michael Kaufman in 2002, and “Open Society: Reforming Global Capital” by him in 2001. He also has written, “The Bubble of American Supremacy: Correcting The Misuse of American Power” by him in 2003 and “Soros On Soros: Staying Ahead of the Curve” by George Soros in 1995.
George Soros most notable trade was when he placed a bet on the Great Britain Pound where he expected that Britain would have to devalue its currency, and no amount of interests rates hike or the currency purchasing power would change the value. Later, Britain devalued its currency and exited the ERM, a decision that was a self-fulfilling prophecy for George Soros. According to Soros, if the speculators believed enough to put their money on the bet, their dreams would have eventually come true.
Lamont was the one who broke the news at 7:30 pm at a press conference that Britain was exiting from the ERM and floating the currency on the international market. The Britain’s financial history today refers to September 17th, 1992 famous as “Black Wednesday” but for George Soros, it was an “Awesome Wednesday.” Once the Great Britain floated the currency, the GBP declined by 15% versus the Deutschmark and 25% versus the US Dollar.
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George Soros has been right about his predictions in the past, as he has consistently predicted things that are likely going to transpire in the economy on http://www.biography.com/people/george-soros-20926527, not only in the United States, but all over the World. He is famous for once making an accurate prediction that the pound was going to be devalued and bet on it, ultimately making over a billion dollars. He also predicted that 2008 was going to be a financial disaster for the Western World, and he was absolutely correct. The prediction that George Soros made in 2008 was based on analyzing the situation we were in economically and concluded that we were going to face a major money crisis. He has a great ability to look at the state of the World and money situations in various countries and accurately figure out what is going to happen next.
This time around the attention is on China, as well as the global market in general. China has been going through an interesting period in their economic history, as they have been known as a rapidly expanding economy, and have produced a massive amount of products. It appears that this expansion period of economic growth is dwindling, as they have been devaluing their Yuan, which is their current monetary unit. They also have started the gradual transition from manufacturing and pumping out products to be exported, to consumption and services.
This is a huge change and the shake up is going to have major implications all over the World, as stated by George Soros. Soros thinks that they have a major problem when it comes to adjustment and that the current situation that the country is in, which currently has over a billion people, is fairly serious. Based on his in depth analysis, he thinks that the crisis that the Chinese are facing, which is going to directly have a huge impact on the United States, all of Europe, as well as other areas of the world, is very serious. One of the biggest points on http://www.investopedia.com/university/greatest/georgesoros.asp that he has been trying to make and get across to people regarding this issue is that people and businesses should be very cautious when investing at this time, as well as in the near future.
The reason that George Soros is so accurately able to foresee what is going to happen is the fact that these trends that happen in economic systems are not coincidence. There are patterns that occur and being aware and able to track this kind of thing is something that George Soros has pretty much mastered. When it comes to his take on the China situation, he thinks that they are coming up against the wall of a situation that could have major problems for the country, which will cause a ripple effect to a laundry list of countries that they do regular business with. Soros has a very good record when it comes to being correct on these types of things, making his words something to really consider.
George Soros is a financial genius. His hedge fund has produced a 20 percent return for years. His foundations in countries around the world promote human rights and an open society. He knows a lot about those two issues. Soros is a holocaust survivor and an immigrant that needed a new country to help him reboot his life again. Soros spent time working in the UK, but he eventually moved to the United States, and he became part of the investment world. He was astute and insightful enough to make enough money to start a hedge fund and he is now worth more than $27 billion.
Soros likes to talk about social issues as well as economic trends. He sat down for an interview with Bloomberg.com recently, and he explained why he thought 2016 would be the year that a global recession will be front and center in the news. Mr. Soros discussed the Chinese economic issues and the fact that China is dragging the rest of the world into their lackluster economic growth mode. He said China is in a recession although the Chinese don’t call it that.
A less than 4 percent GDP growth rate in China indicates a recession in that country, but the Chinese government isn’t admitting that figure is accurate. They still claim their economy will grow by 6.5 percent in 2016. Soros is betting that the Chinese yuan will depreciate against the dollar in 2016, and if he is right that will be another indicator of a epic Chinese meltdown.
But China’s poor economic performance isn’t the only issue that will continue to fuel a global meltdown. Europe is playing a major role in the upcoming drama as well. The European Union has been trying to deal with itself since its inception. The 28 member Union is a mixture of high strung personalities, spend happy cast-offs, and narcissistic nationalists. There has been one crisis after another in that group of misfits, and the most recent crisis may be the beginning of the end for the EU.
Millions of refugees are flooding the borders of European Union members. The open border policy of the Union has been ripped apart by the migrants that are trying to start a new life. The threat of terrorist being part of the group is another EU deal breaker. Europe is unprepared and unequipped to handle the volume of migrants that are flooding the borders like spawning salmon. Mr. Soros thinks the European Union lacks the leadership that can solve the migration crisis or the crisis that surrounds the euro.
So, according to George Soros, China, the European Union, the migration crisis, and the weak performance of emerging markets will help create a global recession that will be as bad as the 2008 meltdown.