Posts in Category: Financial Markets

World’s Equity Markets In Peril Says George Soros

At a world economic forum in Colombo, Sri Lanka, George Soros spoke about his concerns that equity markets are returning to the same conditions that caused the deep recession of 2008. He notes that overall, equity markets have lost a total of $2.5 trillion and warns that this means the world economy is about to fail catastrophically. Soros has always been outspoken and a very busy activist in political matters of U.S. foreign policy. The market on events of the past year do seem to validate his concern.

“The Fear Gauge,” as the Chicago Board Options Exchange Volatility Index (VIX) is colloquially known, has popped up to a level 13 percent higher than at the same time last year. Other stock market indicators have also shown a fairly negative picture. Soros claims that the current market volatility is directly attributable to the loss of power in China’s currency. China is in crisis and their problem is becoming a world wide crisis, according to Soros. He says China’ instability is destabilizing all the equity markets. Therefore, he sees no way to return investing to consistently positive ROI. Part of the problem has been China’s phenomenal growth, causing the nation to become more consuming than exporting. This has caused a situation that George Soros sees being quite similar to the one in 2008, when Europe had a crisis after Greece became bankrupt. The result was a serious recession that took years for the EU to bail out of. It also affected all markets, world wide.

George Soros came from Cold War communist occupied Hungary. He was born there in 1930, only to be forced to endure the Nazi occupation of his native country during World War II. He was able to escape to the West in 1947. He migrated to the United States after spending time in England, where he graduated from the London School of Economics. George Soros has built a major fortune of over a quarter of a trillion dollars. All the while he has been quite active in many pursuits, all centered on freedom of the individual and promotion of civil rights in Eastern Block countries.

The Open Society Foundation (OSF) on Bloomberg was founded by Soros as an effort to increase political and economic education, promote freedom of democracy, and help with health issues. Even in advanced age, Soros continues to work for democratic freedom in those countries that still oppress their people. Here is the page for the Open Society Foundation.

Famous Hedge Fund CEO – Kenneth Griffin

Ken C. Griffin was born on October 15, 1968 in Daytona Beach, Florida. Kenneth started investing when he was a freshman in college. He attended Harvard University and during his second year there, he began a hedge fund focusing on convertible bone arbitrage. He capitalized with approximately $265,000 dollars that was collected from his friends family and his grandmother. Griffins success early on in life enabled him to start a second fund and between the two, he was managing over $1 million. Later on, Ken Griffin became the found and CEO of Citadel. Citadel is a global investment firm that is estimated to be worth approximately $25 billion. Citadel is considered to be one of the largest investment firms in the world. The company’s group of hedge funds are said to be among the highest and most successful hedge funds in the world. Griffin is said to have an estimated net worth of $6.6 billion as of May 2015. Griffin donated some of his money to the financial aid fund at Harvard University in the beginning of 2014. The sum of his donations are said to be around $500 million. It only took 8 years for Kenneth to grow Citadel into a group of more than 100 employees and an estimated net worth of $1 million in capital investments. The company was founded in 1990 by Kenneth Griffin with approximately $4.6 million. He has been in the investment industry on turtle trader for over twenty years and has been featured in Forbes 400 and was listed as one of the youngest entrepreneur’s on the list. Citadel was ranked in the Top 10 Greatest Workplaces by the Great Places to Work Institute. It’s Kenneth’s goals to create a safe, effective and happy work environment for his employees. He has been known to provide a comfortable and pleasing work environment to his employees where he likes to include free lunches, different tours, different types of fitness programs and gifts. Ken started on Market Watch at very young in the investment world and has grown his business into a very reputable, trustworthy business. He has worked very hard to get where he is and has applied many valuable resources and extensive knowledge into each piece of his work.