George Soros Takes a Dim View of World Economy

Billionaire George Soros has directed the Soros Fund Management, which handles the Soros families $30 billion of investments to sell U.S. stocks and buy gold and gold related funds, in anticipation of major market moves. Soros is concerned about the potential collapse of China.

China’s Condition

He claims that the world economy looks dim currently with a major emphasis of China. He says China’s debt fueled economy looks very similar to the U.S. market in 2007-2008 before the real estate collapse spurred a global recession. He points to global deflationary factors as playing a big part in another global recession, which would cause a major boost in U.S. Government Bonds. Capital continues to exit China. They are facing internal political conflict, which will make dealing with financial problems even more difficult.

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EU’s Future Unclear

Soros also sees the potential collapse of the European Union, due to the immigration crisis, Greece’s continuing financial and political problems and the potential exit of the United Kingdom from the EU. He believes that if the UK leaves the EU it could cause other nations to follow suite, causing a total collapse of the system. The last time Soros became this actively involved with investing in the Soros Family Fund was in 2007, because he was concerned about the U.S. Housing Market.

George Soros claim to fame came back in 1992 when he was running a hedge fund and made a bet against the value of the British pound. The subsequent drop in the pound made him an instant billionaire. Since then, he has called several other economic shifts correctly, including the U.S. Housing Bubble Burst in 2007. For the most part, Soros is involved these days with his philanthropic activities, however, when he turns his focus to investing, the world takes note. Only time will tell if he has called another shift correctly or not.

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