If there is one thing you should know about George Soros, it is that he didn’t get rich overnight. George Soros was able to make his fortune in part because of intelligence and in part because of his timing. And, when you consider what he is doing with his money in the current economy, you should be considering what is potentially about to happen that is making him pull his wealth out and try to keep his head down for the immediate future. Any individual who is paying attention to what George Soros is doing should realize that this could be a time period where both intelligence and timing come into play. What you need to really think about is why he is doing it.
George Soros is an individual who fully understands the markets, but he understands how to make money. If you consider that he is currently pulling his wealth out of the top and most sure thing investments in order to protect himself, then it only means one thing. George Soros believes he can actually make more money and generate more wealth (or lose less) if he is able to pull his money out of investments and stay away from the markets.
When you think about the stock markets in general this is a very common idea. People invest as much as they can in order to create wealth and generate returns and dividends. However, the long run investors are the ones who are able to see the best profits and results. It is when people try to day trade or even just take smaller slices of trading time and make money instead of the long run strategy where excess volatility can happen. If you consider the internet crash of the late nineties or even the problems with the great recession, then it is fairly apparent to see how in just a few years the markets can go from extremely exotic to extremely chaotic. In fact, while you might think this is currently the perfect time to invest simply because of the pessimism surrounding the current economy, it could very well be that the global economy is preparing for one more major drop and that could come at any time.
At the end of the day the markets are only about one thing. When it comes to any sort of investments you are creating money, you are buying ownership in wealth generating assets. So, as long as you are able to buy the best assets and generate top income, then you could be in for a much better period of returns. However, if you pay attention to the warnings of George Soros then you could see there may just be a few major reasons to exit the markets.
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