George Soros Cuts Investment In Stocks And Banks On Gold

During the last quarter, George Soros had braced for tough times by making bets against equities, checking on his investments regularly and banking on gold. Government records showed that Soros Fund Management registered a drop of 37% to $3.5 billion by the end of March. As at March 31, the fund was owned bearish options contracts of the SPDR 500 ETF Trust amounting to 2.1 million shares. The ETF Trust tracks Standards $ Poor’s (S&P) 500 Index.

George Soros purchased bullish options in the SPDR Gold Trust worth 1.05 million shares. The Gold Trust follows bullion prices. It is imperative to note that the Fund had taken a stake valued at $264 million in Barrick Gold Corporation towards the end of March. The stake saw Soros own 1.7% of Barrick Corporation. This shareholding on became Soros fund Management’s largest listed holding in the U.S. Soros built his $ 24 billion fund through prudent market wagers.

In the recent past, George Soros issued warning over risks from China. He argued that the Chinese economy is fueled by debt. Soros went on to assert that the present conditions in China are similar to the problems experienced before the 2007/2008 financial crisis. According to Soros, hard landing in China would be practically unavoidable. This situation would enhance global deflationary pressures, thus causing stocks to decline and improve U.S. issued government bonds.

Stan Druckenmiller, former Soros’s chief strategist, is similarly bullish on gold. The billionaire investor asserted that he has much trust on the gold over the negative interest rates advanced by the central bankers. Bloomberg generic pricing indicated that gold registered a sharp rise of 16% in three consecutive months. This was the highest quarterly increase since 1986. The Toronto-based firm, Barrick, has more than doubled its share prices. The mining firm has been cutting costs and reducing its debt.

About George Soros

George was born in Hungary in 1930. He fled the country and settled in New York. George Soros is a renowned philanthropist. The billionaire attended the London School of Economics. He formed his own hedge fund, which he called Soros Fund. Later, he renamed it to Quantum Fund before settling for Quantum Fund Endowment. As he amassed more wealth, Soros was able to speak about the evils happening in the society through the Open Society Foundation.

George is also an accomplished author. His books offer insights on investment and business, economics, politics, philanthropy, open societies and globalization. To date, George has written and published fourteen books, which are The Tragedy of European Union, Financial Turmoil in Europe and the United States: Essays, The Soros Lectures at the Central European University as well as The Crash of 2008 and What it Means. The others are the Age of Fallibility. George Soros on Globalization, open society, The Bubble of American Supremacy, Opening the Soviet System, The Alchemy of Finance and Underwriting Democracy among many others books. This information was originally published on George Soros’s website as highlighted in the following link