Category Archives: Global Economic Meltdown

George Soro’s Tips To Market Analysis

Analyzing the market is one of the most important steps to investment or business operation. If the investment is to grow or a firm is to attain commercial success, it is essential that the market provides a strategic opportunity and a profitable niche. As commonly refereed on, market is the geographical boundaries encompassing the business’s target audience and the competition it faces. In some cases, this boundary is confined to a small locality. In other cases, boundaries may extend from one continent to another. The business’s target market is the group of customers with needs and expectations to which its products and services should appeal and these customers may be located around the globe. What is important to learn here is the factors that would influence the target market, sales and profit. As George Soros the head of a hedge firm with more than $23 billion in assets points out, these factors sometimes depend on how the economy in other countries are behaving. For example, China is one such country that is a direct and indirect competitive threat faced by many countries across the globe and any negative factors affecting China’s economy would be felt in other countries as well.

George Soros clearly predicts the future of stock and commodity market and says it is likely that the year 2016 is going to be similar to the year 2008. George Soros’ studies on this and market matters have been depicted in some of his recent interviews in Sri Lanka and other places as well. One major goal of these analysis is to identify the forces that influence economy, and investment future in general. To gain this insight and utilize it for a business, one should gather this and many other information necessary to answer questions, such as what is the source of activity in the market? What is the total volume of business activity in the market on which is usually measured by indicators such as sales and profit? What are the major firms and agencies that account for the largest percentages of business activity in the market? and so on.

One can successfully emerge in a volatile market and falling stock prices or economy if one knows how to tread carefully in their business. This means identifying the market niche which is a segment of the business market that the firm can exploit profitably. It is nothing but target consumers having needs and expectations irrespective of the market’s ups and downs. If the niche is to be successful, the business needs to establish a position through careful matching of its products and services. The market opportunity must be consistent with the business’s strategy. The potential for sales and profit must be sufficient enough to provide a good rate of return. The business or firm should be able to justify its entry into the market through valid reasons. It should identify its strengths and weaknesses that will affect its chances for commercial success. All these information are also relevant to what George Soros’s predicts.

Visit Open Society Foundations website to know more about George Soros.

George Soros 2008 Prediction


George Soros is a legendary trader and speculator. He made his mark by racking up 30% profits year after year for 30 years. From 1969-2011 his hedge fund continued to rack up profits of 20% a year for each of those years.

In the 1980s he decided to pursue a second career in philanthropy. He set up Open Society Funds to encourage people to respect one another and work for the common good. During these years he has written several books, essays and commentaries on world events.

One of his recent comments on Bloomberg was directed toward China and the chaos that China is creating that is spreading around the world. He stated: “China has a major adjustment problem. When I look at the financial markets there is a serious challenge which reminds me of 2008.’

China has gone through an industrial period similar to that of the United States from 1850 through World War 11. The difference is that China is going through this upheaval in an interconnected world. What China does affects the rest of world economies. The first phase was the rapid export driven economy where China was expanding its infrastructure and piling up huge capital reserves.

The crash of the US Stock Market in 2008-2009 turned the world upside down. An estimated $7 trillion of household wealth vanished overnight in the US alone. Faced with a loss of market share China is now trying to rebuild its economy toward a consumer driven one. This transition is painful. China is now putting the brakes on its wild expansion. To compete in world markets China is devaluing the Yuan and cutting back on imports of commodities. Commodity driven economies are near or at recession levels. Stock markets around the world are in a state of chaos.

Chinese leaders take a long view when it comes to changes in their economy. They have set a goal of 2020 to make the transition to a consumer driven economy. They plan to increase the Yuan’s convertibility and gradually dismantle capital controls.

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