After a long break, the billionaire George Soros is actively taking interest in the decisions of his fund, Soros Fund Management LLC. Those who know George Soros are aware that he has gained immense fame by selling assets in a bearish economy. Perhaps, his bearish investments at the height of a booming global economy, in 2007, were surprising to most. However, as it turned out, vision of George Soros in predicting a global financial slump proved accurate. As a result, his hedge fund yielded nearly $1 billion, in profits.
It is also well-known that Soros started taking a keen interest in philanthropic and political activities. As such, he is known to provide financial assistance to a diverse number of non-profits. Similarly, he actively supported the nomination of Democratic presidential nominee, Hillary Clinton.
However, he has again started to take a keen interest in dictating the investment decisions of his fund. According to sources close to Soros family, George Soros is bearish on the global economy. Therefore, he is not only going bearish but also actively buying shares of precious metal companies. It makes sense as historically investors have relied on commodities and precious metals in the time of distress.
George Soros – CNBC
What George is Thinking?
Financial analysts believe that there are two major reasons for George Soros to believe that the global slump is forthcoming. First, it is the concern that Chinese leadership is not taking interest in tackling the depleting foreign reserve of the country. If the trend continues, China will soon start reeling from trade deficits, which will have serious ramifications for developed and emerging economies around the globe. Secondly, the ongoing European crisis is also a major worry for Soros. Even before the recent exit of Britain, George Soros was directing investments in shares of precious metals. After the exit of Britain, it seems evident that migrant crisis and other matters will also force other countries to re-think their union with the E.U.
Is George Soros Really Bearish?
Still, some members think that the active interest of George Soros is an effort to stabilize his fund after the exit of Scott Bessent, the man in charge of the investment decisions. While Bessent left the hedge fund on friendly terms, George Soros also knows that the newly appointed chief, Ted Burdick has a background in distressed trading and similar investment strategies. To fill the void, George Soros wants to take Mr. Burdick into confidence by providing useful guidance regarding future investment plans. Therefore, the re-entry of George Soros is nothing out of the ordinary.
Regardless of what analysts think, it is now becoming increasingly imminent that George Soros is investing heavily in precious metals. Recently, he has gained millions of revenues by buying stocks of Barrick Gold Corporation and Silver Wheaton Corporation. Therefore, it may be the time for investors to re-evaluate their future investment strategies.