Hedge fund mogul George Soros is not a happy man. He sees a replica of the 2008 financial global crisis and advises that investors need to be very cautious so as to avoid being swept away by the tide. Speaking at the recently concluded World Economic Forum that was held in Sri Lanka, Soros pointed out that China one of the world’s financial heavyweights is facing a challenge in finding another growth model and through its currency devaluation, it is spreading the financial crisis plague to the rest of the world.
George Soros pointed out that because of China’s recent predicament, it has become very hard for nations in the developing world to return to levels where they can experience positive interests precisely the reason he said that the current financial environment has a lot of similarities to the 2008 period.
At the beginning of 2016, the global stocks, currency and commodity markets were not doing very well. In the financial markets, the Yuan made a very long dive and many questioned the strength of the Chinese economy especially now that is is shifting its attention from manufacturing and investment towards offering services. During the first trading week of the year, not less than $2.5 trillion was wiped away from the global equities value.
George said that China has a very big problem in adjusting to its current changes and out of that alone, he foresees a crisis erupting. This is not the first time he has made a comparison of a current financial environment to the 2008 crisis. In 2011 in Washington, he had said that the European-Greece debt crunch would amount to an even bigger crisis than in 2008.
Soros’ opinions on matters related to the financial markets are not taken lightly. He is the globe’s richest hedge fund manager with a net worth of not less than $27.3 billion. To get where he is today, it has taken him faith, courage and determination to risk and learn.
He started trading in New York in the 1950’s after graduating from the London School of Economics with an Economics degree. Prior to that, he had managed to flee from a World War II zone to end up in England en route Hungary. Out of his investment prowess, he built his empire through his career as a hedge fund manager.
Although he considers himself semi-retired, he does not shy away from giving his opinions on trending topics and especially, those that have anything to do with the markets. He is also very vocal on political matters and is known to support the Democrats. On matters philanthropy, he is not left behind as well. He is the founder of the Open Society Foundation that seeks to enrich lives through the human rights, open societies and more.