Almost everyone has a reason to hate George Soros. Most people will quote his involvement with leftist political causes time and again. However, his enemies cannot hide their admiration for his bold investment prediction that the US stock market is headed for collapse.
In fact, Soros has just increased to more than $2 billion his financial bet that U.S. stocks will crumble, a move called shorting? the market by betting against good times. Hes been raising his short bet since last year.
And Soros isn't going further in this direction gingerly: In the second quarter, SEC records show, Soros Fund Management increased its position to 11.3 million put? options on the S&P 500 exchange-traded fund, boosting the short position from 3 percent to nearly 17 percent.
The dollar value of that position soared from $299 million to $2.2 billion, and the put position represented the single biggest slice of Soros? portfolio.
This shrewd and famous fund manager appears to know a secret that others investing in the stock market have not realized. His thinking is a perfect variation of our argument that financial trouble is brewing because of stringent government controls, slow economic growth, a growing federal budgetary deficit and increasing geopolitical instability. The situation is made worse by the indifference of both parties in Washington, D. C.
A Looming Global Economic Meltdown
Soros has studied the market and seen the signs of another financial crisis. Its magnitude is scary since it will be more devastating than what happened in 2008. We share a similar opinion.
Interestingly, Soros at the same time has been doing something else with his resources: investing more in gold as a hedge against the disaster that he apparently sees coming. He nearly doubled his ownership in a U.S. gold-mining company's exchange-traded fund and initiated new stakes in other gold producers, Reuters reported.
Gold Is God's Money
You do not have to possess the mammon that George Soros does to understand how the future is going to unfold and position your own investments in light of that wisdom. In fact, its probably disproportionately more important for you to do that with your financial nest egg than it is for Soros to do it with a spare $1 billion here or there. Its time to invest your assets in the only real long-term play, Gods Money, gold and silver coins and other instruments.
In fact, Soros has just increased to more than $2 billion his financial bet that U.S. stocks will crumble, a move called shorting? the market by betting against good times. Hes been raising his short bet since last year.
And Soros isn't going further in this direction gingerly: In the second quarter, SEC records show, Soros Fund Management increased its position to 11.3 million put? options on the S&P 500 exchange-traded fund, boosting the short position from 3 percent to nearly 17 percent.
The dollar value of that position soared from $299 million to $2.2 billion, and the put position represented the single biggest slice of Soros? portfolio.
This shrewd and famous fund manager appears to know a secret that others investing in the stock market have not realized. His thinking is a perfect variation of our argument that financial trouble is brewing because of stringent government controls, slow economic growth, a growing federal budgetary deficit and increasing geopolitical instability. The situation is made worse by the indifference of both parties in Washington, D. C.
A Looming Global Economic Meltdown
Soros has studied the market and seen the signs of another financial crisis. Its magnitude is scary since it will be more devastating than what happened in 2008. We share a similar opinion.
Interestingly, Soros at the same time has been doing something else with his resources: investing more in gold as a hedge against the disaster that he apparently sees coming. He nearly doubled his ownership in a U.S. gold-mining company's exchange-traded fund and initiated new stakes in other gold producers, Reuters reported.
Gold Is God's Money
You do not have to possess the mammon that George Soros does to understand how the future is going to unfold and position your own investments in light of that wisdom. In fact, its probably disproportionately more important for you to do that with your financial nest egg than it is for Soros to do it with a spare $1 billion here or there. Its time to invest your assets in the only real long-term play, Gods Money, gold and silver coins and other instruments.
About the Author:
Discover the profitable world of precious metal investing. Take a moment to visit our website where you can find out all about the benefits of gold and silver investing.
No comments:
Post a Comment