In the second half of 2015, the U.S. stock market took a nasty turn and investors felt the crazy winds of uncertainty that surrounded them. The crashing oil prices, the emergence of ISIS and the strange series of events that were taking place in the political arena in the United States. The year got off to a decent start, but the S&P finished the year flat. The fear that raced through the market at the end of 2015 continued in 2016 when the market took the worst nosedive at the beginning of any previous year on record.
According to Billionaire hedge fund investor George Soros, the unpredictable nature of the stock market is a constant, but the end of 2015 and the beginning of 2016 signaled more than unpredictability. Soros told Bloomberg.com that the stock market’s behavior was one of the signs that his 2011 prediction was in progress.
In the Bloomberg.com article, Mr. Soros said he warned the members of the economic forum in Sri Lanka that a global recession is in progress on opensocietyfoundations.org, and it will be more devastating than the mortgage bond inspired Great Recession of 2008.
George Soros is the manager of one of the most successful hedge funds in history. He is also known as the man who broke the Bank of England when he bet against the pound sterling in 1992. That bet put $1.2 billion into the Soros bank account. Since then, Soros has added another $22 billion to his private account, and he has spent about $6 billion promoting his open society concept in countries that don’t respect human rights.
When NYBooks.com reprinted the Soros prediction recently, one of the first points that was stressed during the forum was China’s inability to turn their economy around. China has the world firmly locked in stranglehold, and it is trying to tighten its grip, by manipulating their currency and releasing false economic figures. The truth is, China is turning the world into a carbon-copy of itself, economically speaking, and there’s no stopping the turmoil that will result from that process.
Mr. Soros believes China’s currency will be devalued in 2016, so he is betting that China will not be able to turn their battered manufacturing sector into a positive economic performer. China is also going to have trouble keeping their stock market solvent, according to Mr. Soros. The Chinese dumped billions of dollars of capital reserves into their stock market at the beginning of 2016, and the market is barely hanging on. China is going to create an assortment of issues for Asian nations and the rest of the world, and Soros thinks the European Union could exacerbate the global meltdown.