With an estimated net worth of $24 billion, George Soros is a widely respected expert in the field of the financial markets. Soros has earned this respect through his various financial dealings, his generous philanthropy, and his overall life story. Soros has overcome a lot in his life to get to where he is today. Born in Budapest in 1930, he lived through the stark period where his home country was simply a puppet regime for the Nazi worldview. After World War II the country was dominated by communism, so George elected to flee for England. After graduating from the London School of Economics, he settled in the United States and steadily accumulated a massive fortune primarily because of the international investment fund which he founded.
Because George Soros has been so successful in the financial realm, when he makes a prediction about the financial markets people have a tendency to take notice. Recently, Soros has made some rather troubling predictions and comparisons that many would do well to take heed on. Earlier this month, Soros stated that he sees a crisis in the current global market that in his mind is reminscent of the 2008 market conditions.
In a nutshell, Soros feels that the current global financial climate is very conducive to a market crash that would be very similar to the 2008 crisis. George Soros told Bloomberg and a worldwide economic forum in Sri Lanka that investors would do well to be very cautious at this present date and time. Soros pointed out the fact that China is having difficulty finding a new growth model and said that could lead to a domino effect throughout the rest of the world. China’s economy has a number of question marks because it is presently in the process of shifting away from an investment and manufacturing style to more of a focus on consumption and services.
Indeed, there are a number of signs out there that would complement Soro’s suggestion that now is a time for investors to be cautious. The Chicago Board Options Exchange Volatily Index, better known as the “fear gauge” is up this year 13 percent. An index which measures the cost of protection on Japanese shares is up 43 percent and there is also a Merril Lynch price swing estimation of Treasury Bonds that has risen 5.7 percent. Data released earlier this year is also pointing to a sluggish manufacturing sector. Thus, Soros would once again appear to be right on target with his estimation that 2016 is a year that could be just as financially treacherous and uncertain as 2008.