Privacy   |    Financial   |    Current Events   |    Self Defense   |    Miscellaneous   |    Letters To Editor   |    About Off The Grid News   |    Off The Grid Videos   |    Weekly Radio Show

Billionaire Investor Abandons Stocks For Gold; Says Market Is Collapsing

Billionaire Investor Abandons Stocks For Gold; Says Market Is Collapsing

Image source: Pixabay.oom

 

A legendary billionaire investor apparently believes the stock market is about to collapse, and he’s moving his money into gold instead.

George Soros has dumped 37 percent of his US stocks and made huge investments in gold, according to Bloomberg, which reported that Soros bought 1.05 million shares in the SPDR Gold trust (an exchange fund that tracks bullion prices) and $264 million worth of Barrick Gold Corp (NYSE: ABX), the world’s largest gold-mining company.

“A hard landing is practically unavoidable,” Soros said of the current state of the market in an interview with Bloomberg Television. “I’m not expecting it; I’m observing it.”

Raul Moreno, CEO and co-founder of iBillionaire, told CNN this week, “It’s been a while since he’s been this bearish. Soros has made money in markets going up or down, so people definitely trust what he’s saying.”

Plant A Full Acre Of Food With This Emergency Seed Bank!

Soros also doubled his bet that the S&P will lose value.

What Soros Knows

Soros built a $24 billion fortune predicting what the market is going to do next. In 1989, Soros predicted Japanese stocks would collapse, and they did. He also made a very successful bet that the Bank of England (the UK’s equivalent to the Federal Reserve) would devalue the pound in 1992. It did, and Soros made $1 billion on the deal.

Soros has been, for some time, warning of another financial meltdown like that of 2008. He has said the European debt crisis is worse than the crisis of 2008, which began when the US mortgage market collapsed.

sorosNor is it just Europe Soros is worried about. He also has predicted that the Chinese currency – the Yuan – is about to collapse. That would bring down the Chinese economy and potentially cause a collapse of stock prices in the United States. Many American companies are heavily dependent on sales to China.

One of Soros’ biggest fears is deflation, or a collapse in prices and corporate profits. A similar scenario was one of the worst effects of the Great Depression.

Soros based his Chinese prediction on the fact that prices for finished goods in China have been falling for 46 straight months, Bloomberg reported.

Not Just Soros

Soros’ former employee, money manager Stanley Druckenmiller, has been urging investors to buy gold because of the huge amount of debt in China, CNN reported. Druckenmiller compared the state of Chinese banking to subprime mortgages in the US in 2007-2008, and predicted it will soon collapse.

The Federal Reserve will not be able to get the economy out of the current situation, Druckenmiller warned investors.

“The Fed has no end game,” he said. “The Fed’s objective seems to be making sure the S&P goes another six months without a 20 percent decline.”

New “Power Buddy” Provides Instant Backup Electrical Power In A Convenient, Portable Briefcase

Druckenmiller is also worried about what he calls reckless behavior of American CEOs who have been wasting money on stock buybacks and mergers.

Bond investor Jeff Gundlach of DoubleLine Capital also thinks that the Fed could make the economy worse with incredibly low or negative interest rates, CNN reported.

Negative rates are really bad,” Gundlach said. “It’s going to backfire like an old Model-T.”

Gundlach says gold could hit a price of $1,400 a troy ounce this year because of economic turbulence. Gold was trading at $1,271.38 an ounce on May 18, according to goldprice.com.

What is your reaction? Do you believe the stock market is going to collapse? Share your thoughts in the section below:

Harness The Power Of Nature’s Most Remarkable Healer: Vinegar

© Copyright Off The Grid News
Off The Grid News