George Soros, the renowned hedge-fund king pin, is disliked for all kinds of reasons. His funding of a chain of leftist political causes is one of the top reasons for his widespread unpopularity. But his enemies still admire him for one simple reason. His prediction that very soon, the US stock market will collapse.
The amount of money Soros has bet for a crumbling US stocks market has already hit 2 billion dollars. Such a move is called shorting. This simply means placing your bet against good times. His shorting bets have been rising gradually since the beginning of 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.
His portfolio registered its single biggest slice with its dollar position soaring from 299 million dollars to 2.2 billion dollars.
What did this famed and nefarious money manager see that most stock-market investors still do not? Well, apparently, much the same things that we see at Real Money USA: a slow-growth economy, an overweening government attempting to control every lever of it, increasing geopolitical unrest and a U.S. federal-budget deficit that only continues to balloon while addressing it meaningfully has faded as a concern of both parties in Washington, D.C.
Another Global Financial Crisis
Soros is smart enough to read the signals of an approaching financial crisis. The crisis this time appears bigger and more threatening than that of 2008. We share similar views.
So Soros has adeptly transferred his wealth and resources into a sector he deems more secure. He has hedged his wealth in gold to cushion himself against the approaching financial meltdown. Reuters reported that his ownership in a company that mines gold has almost doubled. He also has bought stakes in other gold-related companies.
Gold Is God's Money
You do not have to enjoy the insights of a George Soros to see the approaching financial storm. This makes it prudent to protect your hard earned wealth as best you can. Your money is a trifle amount compared to the billions George has to spare from his deep pockets. It is, therefore, paramount to invest in solid long term plans like gold and silver coins and other such valuable and solid financial instruments.
The amount of money Soros has bet for a crumbling US stocks market has already hit 2 billion dollars. Such a move is called shorting. This simply means placing your bet against good times. His shorting bets have been rising gradually since the beginning of 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.
His portfolio registered its single biggest slice with its dollar position soaring from 299 million dollars to 2.2 billion dollars.
What did this famed and nefarious money manager see that most stock-market investors still do not? Well, apparently, much the same things that we see at Real Money USA: a slow-growth economy, an overweening government attempting to control every lever of it, increasing geopolitical unrest and a U.S. federal-budget deficit that only continues to balloon while addressing it meaningfully has faded as a concern of both parties in Washington, D.C.
Another Global Financial Crisis
Soros is smart enough to read the signals of an approaching financial crisis. The crisis this time appears bigger and more threatening than that of 2008. We share similar views.
So Soros has adeptly transferred his wealth and resources into a sector he deems more secure. He has hedged his wealth in gold to cushion himself against the approaching financial meltdown. Reuters reported that his ownership in a company that mines gold has almost doubled. He also has bought stakes in other gold-related companies.
Gold Is God's Money
You do not have to enjoy the insights of a George Soros to see the approaching financial storm. This makes it prudent to protect your hard earned wealth as best you can. Your money is a trifle amount compared to the billions George has to spare from his deep pockets. It is, therefore, paramount to invest in solid long term plans like gold and silver coins and other such valuable and solid financial instruments.
About the Author:
Learn more about precious metal investing. Stop by Anne Trimble's site where you can find out all about gold and silver and what it can do for you.
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