The Street recently released an article that analyzed the Soros Fund Management major sale of all stocks in Chevron, Chesapeake Energy and NRG Energy. The article questioned whether Soros and his firm knew something about the future of the energy sector. It then cautioned most investors to wait until more facts and figures are revealed.
Investors should have a much better idea of whether to hang on to their shares or sell like George Soros did, after many companies release their earnings statement for 2015. The Baker-Hughes Rig Count is also being released this coming Friday and that is expected to shed some light on the energy situation.
The article went on to highlight some of the current issues in the oil industry. The main concern is that while a drop in oil prices does help the average American with their spending, the broad implication is negative. That broader implication is that there are 9 million American jobs in oil, which makes up 5 percent of total employment.
The article mentioned attempts to fix the oil price issue among the biggest oil producing countries. Unfortunately, Iran had no interest in coming to any agreement due to wanting revenge for the hardships that sanctions have brought. Saudi Arabia and Russia attempted to sway Iran into freezing oil production in order to bring up the price, but to no avail.
This move to sell shares in the energy sector is a big one for the Soros Fund, but it is not their first. This is the firm that broke the Bank of England because he shorted the British Pound. He did a similar thing with several Asian currencies and through these type of moves, George Soros is now worth almost 25 billion dollars.
George Soros did not start out with a lot of money, though. He was actually born in Budapest in 1930 and spent his childhood living under Nazi and then Communist rule. Soros fled in 1947 and decided to study at the London School of Economics. After graduating, he moved to the United States and worked successfully for many years as an investor for various New York firms.
In the 1970s, Soros decided to start Soros Fund Management and started helping people make billions of dollars. He had years where he created a 100 percent return and would rarely create a return of less than 30 percent. After, Soros made his billions, he decided to concentrate on his philanthropy, the Open Society Foundations. This charity works to help individuals create more transparent governments, more open societies and more human rights for every individual on the earth.
For those who would like to read The Street’s full article, go here: http://www.thestreet.com/story/13465588/2/week-ahead-in-energy-does-george-soros-know-something-we-don-t.html