George Soros, a multi-billionaire investment guru, just cut his U.S. equity holdings by 37%, Bloomberg reports. Currently, his hedge fund, Soros Fund Management, holds $3.5 billion in these equities. Moreover, the fund holds put options on S&P 500.
These options are equivalent to 2.1 million shares of the SPDR 500 ETF Trust and are aimed to profit from market decline on http://www.georgesoros.com/. The face value of these options stands at over $400 million.
At the same time, the fund has acquired call options on 1.05 million shares in the SPDR Gold Trust. This bets aims at profiting from gold’s rise. Additionally, a $264 million acquisition of Barrick Gold Corp was made.
Another well-known investor connected to George Soros, Stan Druckenmiller, is also bullish on the yellow metal. He thinks the negative real interest rates set by the central banks around the world are absurd. When it comes to currency allocation (and gold is considered money by many), gold is his largest holding.
At present, gold trades at over $1,200 per troy ounce, and is nearly 35-40% off its high of a few years ago. This precious metal has been considered a long-term hedge against inflation and a storage of value for thousands of years. This metal is also considered to be a safe haven during the times of turmoil, whether political or economic.
George Soros not only feels bearish on American stocks. He also thinks that China’s economy, which is powered by debt, is at a point similar to that of the United States prior to the 2008 financial crisis. He thinks that hard landing in China is inevitable.
Read more: Billionaire Soros Cuts U.S. Stocks by 37%, Buys Gold Miner
According to Soros, a collapse in China would increase deflationary pressures and lead to stock market declines not only in China, but also in the United States.
George Soros is known for large bets. Back in 1992, his hedge fund bet billions of dollars on Pound Sterling fall, netting Soros over a billion dollars in profits. Over the past four decades, George Soros‘ investments returned, an the average, 30% a year, something very uncommon.
No wonder, George Soros is considered among the best investors in the world. His wealth is estimated to be around $25 billion. In addition to investing. this multi-billionaire gets involved in supporting various liberal causes as well as the Democratic Party in the United States.
George Soros’ a supporter of Hillary Clinton and an outspoken critic of Donald rump. Soros even contributed several million dollars to anti-Trump super PACs.