We disagree with hedge-fund king pin George Soros for all sorts of reasons, most notably his over-the-top funding of one leftist political cause after another. But there is at least one area where we see eye-to-eye with Soros: The U.S. stock market is headed for collapse, and soon.
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.
It is evident that the famous and savvy money manager has observed something in the stock market that other investors cannot see. The trend in the stock-market appears to be mirror of how we look at things, too, here at Real Money USA. The economy is showing slow growth, an encroaching government, rising geopolitical conflicts and a federal budget deficit that is spiraling out of control. The solution to these challenges appears not to concern any political party in Washington, D. C.
A Looming Global Economic Meltdown
A smart man, Soros must realize that all of this comprises a recipe for global financial disaster that could make the 2008 financial collapse look like child’s play. That is what we see too.
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.