George Soros has recently made a prediction on Bloomberg.com that has a lot of people feeling nervous. While at an economic forum in Colombo, Sri Lanka, he said that investors need to be very cautious. He feels like the devaluation of the yuan is hurting the rest of the world and that a crisis that echoes that which happened in 2008 is on the horizon.
As the value of China’s currency continues to decrease, the country is struggling to set up a new growth model. Unfortunately, this is negatively affecting the international economy. In just the first week of 2016, over $2 trillion was wiped from the value of global equities. In just one day, Chinese equities plunged so low that trading had to be stopped for the rest of the day. George Soros strongly feels that the adjustment problems that China is facing amounts to a serious crisis. It reminds him of the challenges that were faced in the year 2008.
George Soros is a well respected businessman, investor, and philanthropist. His hedge fund firm that was set up in the late 1960s has consistently been successful. In fact, from the years 1969 through 2011, the firm gained about 20 percent each year. George Soros has a keen eye for finding successful investments and has made a fortune off them. It has been estimated that his net worth totals more than $27 billion. He has a reputation for predicting financial trends. For example, in the year 1992 he was able to walk away with over $1 billion because of a bet that he made indicating that the UK would have to devalue their currency.
Besides his success in the business world, Soros has been a successful philanthropist. He feels that it is his obligation to help others and to take a strong stand on issues that many view as controversial. For example, not too long after setting up his hedge fund firm, he took a stand helping black individuals in South Africa under apartheid. He provided scholarships for these individuals. Also, he has helped many individuals from the Roma community in Europe. He provided educational opportunities for them, including scholarships.
George Soros is the chairman and founder of Open Society. The purpose of Open Society is to make sure that individuals have their rights respected, no one group of people can monopolize truth, and governments are held responsible for their actions. This organization is a giant network that has connections in more than 100 countries.
Until the global market and economy improve, it would be wise for investors to heed the warning given by George Soros. He feels that the current situation will be very similar to what took place in 2008.