When it comes to information about investing, George Soros is the go-to man in that industry. Soros is an investment wizard that has accumulated an enormous fortune picking stocks and betting on financial situations that others overlook. Forbes says Soros is the 30th wealthiest person on the planet with more than $27 billion in assets. George is not afraid to give his money away to support causes that are important to him. He has more than 20 foundations around the world, and he is in touch with all of them on a regular basis.
Bloomberg.com recently posted an article about a George Soros prediction, and investors around the world immediately responded to his views on the global economy. Soros thinks 2016 will be a replay of the 2008 meltdown for several reasons. Soros is not one to spread gloom and doom reports around the financial markets, but in this case, he believes the facts have to be reported.
The facts, as Soros mentioned in the Bloomberg interview, are happening now. The first fact is China is in an economic crisis. China can’t stop its manufacturing and export slowdown for a number of reasons. The Chinese government has pumped billions of dollars into its stock market recently, and that move hasn’t helped that market. Devaluating the yuan is another tactic China is employing to turn the economy around, but that move is creating more issues for the rest of the world.
The truth, as Soros points out, is China has a few tough years ahead economically speaking. The world is going to suffer because China can’t turn their massive economy around quickly. China can’t become a consumer driven market overnight and therein lies the problem. China is the main source of this looming recession, and no one can change that fact.
But, as Soros mentions in an NYBooks.com interview, there are other issues that will contribute to the 2016 recession. The European Union is in crisis mode, and Soros believes the Union could collapse if Chancellor Angela Merkel doesn’t bring the countries together to solve the migration issue. The migration crisis is threatening one of the foundations of the Union which is open borders. Some EU members have closed their borders and others like Britain are threatening to leave the Union.
The Middle East crisis is another factor that will contribute to a 2016 economic recession. Soros believes the Syrian crisis may be resolved in 2016, but there are other issues in that region that are contributing to the global stress that is accumulating in financial markets.
Mr. Soros thinks investors should find other investment vehicles in 2016. The stock market is a risky investment vehicle, and it’s only going to get riskier as the year progresses.