George Soros, a leading investor and financial expert, has recently urged that investors use caution at an economic forum in Sri Lanka. George Soros adds that the recent economic issues in China are going to have a global impact and the results could be disastrous.
One of the challenges that the global financial market will soon have to face is the transition to a positive interest rate economy. Since the global downturn in 2008 on http://www.bloomberg.com/news/articles/2016-01-07/global-markets-at-the-beginning-of-a-crisis-george-soros-says, the world has been operating at near 0 interest rates. While the rates were originally intended to spur economic grown and help stop a recession, the rates could not last forever and many economies will struggle as the rates increase.
George Soros states that the current financial climate is very similar to the financial climate of pre-2008. With China’s financial struggles as they continue to devalue their currency, stock and commodity markets are taking severe blows. While some would contend that the issues are not that serious, Soros states that the adjustment problem in China could amount to a crisis. George Soros continues to say that the financial markets today are in a similar position that they were in 2008 before the market crash. This year alone the stock market has seen unparalleled volatility and many investors are becoming increasingly more nervous. While George Soros admits that his predictions don’t always come to pass, the current financial climate suggests that the concerns that investors have may be warranted, particularly with the economic struggle that China is currently seeing.
China’s devaluation of the Yuan has sparked a lot of financial debate on https://www.facebook.com/breakingpolitical/posts/1562000144097945 of the last few years. Their sudden and unexpected measures to devalue the Yuan have caught many countries and economic experts by surprise. Analysis’s say that China’s devaluation marks a shift in the fundamental heart of their economy. The move is in line to help them reform towards a market-oriented economy rather than a production economy. However, some believe that the devaluation of their currency is a desperate attempt to combat the sharp fall in recent Chinese exports. This is a sore subject for US politicians, as many believe that China has already been keeping their currency at artificially low values in order to have an export edge against the US.
George Soros is an investment expert with more than 50 years of experience managing successful investments. His hedge-fund firm has had a consistently high rate of return, with an average rate of around 20% in the last 50 years. Other than his investment ventures, Soros is lauded for his significant charitable donations and initiatives. In his lifetime, Soros has given billions of dollars to charitable initiatives and foundations. Soros is also the author of more than a dozen books. One of his most famous works is The Tragedy of the European Union (2014). His contributions to the financial world are notable.