George Soros sold 37% of his long stock exposure last quarter and bought more gold. This move indicates the legendary investor is bracing for a stock market storm to an amount which is more than $430 million, according to regulatory filings made public this week.
The man who broke the Bank of England is instead investing in gold. Gold price tends to go up when people are afraid of the financial market. Soros held new positions in a gold ETF and also bought shares of Barrick Gold. He is now worried about the global economy and is bullish on gold. Earlier this year, the legendary investor showed his concerns publicly on China. The country is in trouble and it reminds him of the U.S. financial crisis in 2008.
"China has a major adjustment problem. I would say it amounts to a crisis," Soros said in a January speech. "When I look at the financial markets there is a serious challenge which reminds me of the crisis we had in 2008."
"It's been a while since he's been this bearish," said Raul Moreno, CEO of iBillionaire, an app that tracks the portfolios of influential investors. "Soros has made money in markets going up or down so people definitely trust what he's saying."
Soros is not completely bearish on the market. Like other money managers, he's playing both sides of the market and has investments worth over $80 million in eBay and Zoetis. Besides, he also bought new stakes in Apple and Yahoo.
In 2016, gold is one of the strongest performing markets and gold-related stocks is also one of the strongest performing sectors in the global financial market.