How The 2008 Market Could Be Back Again
One of the things that a lot of people are currently looking at is the situation that is happening in China. There are a lot of macro factors going on that could well play into a tough situation for the United States markets and the other markets that are related to our own.
The ongoing situation is China is that the country is believed to be devaluing its currency. This has spiked concerns that other countries in Asia may feel the pressure to do the same thing. If that were to happen, there could be a lot of lasting problems that result from it. No one wants to see a currency war spark out, particularly at a moment like this.
The Economist has noted how accurate Soros has been on a lot of the macro economic calls he has made about the market. He is skilled at making calls about these types of things because he follows the pulse of the economic picture all around the world. He practically never stops looking at how things are going all throughout the economy.
There are a lot of economists who are not calling for a 2008 style recession, but they are almost always late to the party. They rarely ever tell the world that there is going to be a recession until that recession is already upon us. Soros tries to get ahead of the recession and let people know that it is about to happen. He has a strong track record of being able to do so.
Another concern for Soros is the mess in Greece. There was a debt crisis that was garnering a lot of attention for a period of time. However, that crisis seems to have fallen off the radar of a lot of popular media. That being said, the crisis is still ongoing and still has a lot of potential to get a lot of markets into a big mess.
Soros is concerned that a lot of people are not paying attention to what is happening in the stock market right now. There are signs like the ISM manufacturing indicator which has now dipped below 50. When it goes below 50 this is often an indicator of what is about to happen in the markets, and it is not a good sign. This means that manufacturing has slowed in the United States, and this of course translates to bad news for the markets. There are simply too many things that directly tie into manufacturing for this to be ignored.
There are a number of voices that are worried about what is happening in the markets right now, but Soros is one of the few who is telling the world that it really could be as bad as 2008.