Anxious about the outlook for the global economy and concerned that large market shifts may be at hand, the billionaire hedge-fund founder and philanthropist recently directed a series of big, bearish investments, according to people close to the matter.
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Anxious about the outlook for the global economy and concerned that large market shifts may be at hand, the billionaire hedge-fund founder and philanthropist recently directed a series of big, bearish investments, according to people close to the matter. Last month at the Sohn Conference, Stanley Druckenmiller warned traders to “get out of the stock market” and buy gold.
The Soros firm purchased 19 million shares of Barrick Gold Corp., a move which gained $90 million in the first quarter.
Soros believes currency outflows in China and an immigration crisis in Europe will soon lead to a major global economic downturn.
He’s also anxious that China will continue to exert deflationary pressure on the global economy. Most of the money that banks in China are supplying is needed to keep bad debts and loss-making enterprises alive, Soros said at the time.
Soros is also concerned about the migration crisis, the Greek debt issue and the UK’s possible exit causing the European Union to collapse.
According to the media, Soros is anxious about capital flight from China.
As for the EU, a vote for Brexit makes disintegration of the Union “practically unavoidable”, but strength in the pound has Soros optimistic voters will choose to remain.
At the same time, the fund has increased its investment in gold, seen as a relatively safe asset during times of financial turmoil.
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Soros has always closely monitored his firm’s investments.
