George Soros wears several different hats, He in a hedge fund investor. He has established foundations all over the world that promote open societies, and he is an economic guru that often speaks about where the world is heading from a financial point of view. The eighty-five-year-old Soros doesn’t tell people what they want to hear. He gives them the facts based on research and insight. His latest prediction is the world is on the doorstep on a global recession, and there’s not much any country can do about it.
Soros backs up his prediction with solid evidence. The Hungarian-born Soros thinks China is pulling the world into a recession that will rival the 2008 meltdown. The stock market is having a tough time and even though it has rallied, Soros believes that the spike is only temporary. Soros thinks the fact that stocks soar to new heights and then plunge to panic-induced lows on any given day is a sign that things aren’t right in the corporate world.
But Soros thinks people are overlooking the root of the stock market’s volatility. It’s not the risky financial practices like in was in 2008 or the underlying weakness of the economy that is driving the United States and other countries toward the edge of a recessionary cliff. It’s the scared traders that have their hands on the panic button this time. Soros points to the U.S. stock index going up by more than 300 points after dropping to the second-lowest bottom in two years hour before the spike.
Stock volatility as well as the weak international economic backdrop especially in China and other Asian and South American countries has some economic analysts, monetary policy officials, and consumers scratching their heads. But George Soros is not one of those head-scratchers.
But there is an element of fear surrounding stock market fluctuations around the world, and the economic indicators that have cropped up since the beginning of 2016. Both of those signs have sent a bolt of uncertainty as well as second-guessing into the minds of investors.
But Mr. Soros thinks investors should be looking at the international production behemoth that posted the worst economic growth in 25 years in 2015 as proof of the pending recession. All eyes and ears should be on China and the fact that what the Chinese government is saying is not the reality they are immersed in. China is going to throw the world into a global recession. Mr. Soros is betting against China’s currency and other big hedge fund investors are doing the same thing. Those big-time investors know an epic slowdown is coming, and they are going to make money in spite of it.