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07-01-2016, 03:22 PM
Global markets are facing a crisis and investors need to be very cautious, billionaire George Soros told an economic forum in Sri Lanka on Thursday.
China is struggling to find a new growth model and its currency devaluation is transferring problems to the rest of the world, Soros said in Colombo. A return to positive interest rates is a challenge for the developing world, he said, adding that the current environment has similarities to 2008.
Global currency, stock and commodity markets are under fire in the first week of the new year, with a sinking yuan adding to concern about the strength of China’s economy as it shifts away from investment and manufacturing toward consumption and services. Almost $2.5 trillion was wiped from the value of global equities this year through Wednesday, and losses deepened in Asia on Thursday as a plunge in Chinese equities halted trade for the rest of the day.
“China has a major adjustment problem,” Soros said. “I would say it amounts to a crisis. When I look at the financial markets there is a serious challenge which reminds me of the crisis we had in 2008.”
[Image: 750x-1.jpg]
Read more at Source: Bloomberg
China is struggling to find a new growth model and its currency devaluation is transferring problems to the rest of the world, Soros said in Colombo. A return to positive interest rates is a challenge for the developing world, he said, adding that the current environment has similarities to 2008.
Global currency, stock and commodity markets are under fire in the first week of the new year, with a sinking yuan adding to concern about the strength of China’s economy as it shifts away from investment and manufacturing toward consumption and services. Almost $2.5 trillion was wiped from the value of global equities this year through Wednesday, and losses deepened in Asia on Thursday as a plunge in Chinese equities halted trade for the rest of the day.
“China has a major adjustment problem,” Soros said. “I would say it amounts to a crisis. When I look at the financial markets there is a serious challenge which reminds me of the crisis we had in 2008.”
[Image: 750x-1.jpg]
Read more at Source: Bloomberg
The only way to avoid making mistakes is not to do anything. And that … will be the ultimate mistake. - Goh Keng Swee
A pessimist complains about the wind; an optimist expects it to change; the realist adjusts the sails. - W. A. Ward
Learn from the mistakes of others. You won't live long enough to make them all yourself. - Jane Bryant Quinn
人生最大錯誤，用健康換取身外之物。 ^ 人生无常，珍惜当下。 ^ 放弃固执，适时变通。 ^ 前面是绝路，希望在转角。
A pessimist complains about the wind; an optimist expects it to change; the realist adjusts the sails. - W. A. Ward
Learn from the mistakes of others. You won't live long enough to make them all yourself. - Jane Bryant Quinn
人生最大錯誤，用健康換取身外之物。 ^ 人生无常，珍惜当下。 ^ 放弃固执，适时变通。 ^ 前面是绝路，希望在转角。
