There is a truism in investing that says if you want to succeed, then follow the money and invest in what the rich invest in. Therefore, it is very interesting to American investors when on Aug. 16, a new report on George Soros, global investor and consulting adviser to the Obama administration, sold his stake in U.S. financial stocks and with the proceeds, purchased $130 million in gold. This move is also coming at a time when the Dow just crossed over 13000, and is touching its highest levels since April of 2008.
Soros, who manages funds through various accounts in the US and the Cayman Islands, has reportedly unloaded over one million shares of stock in financial companies and banks that include Citigroup (420,000 shares), JP Morgan (701,400 shares) and Goldman Sachs (120,000 shares). The total value of the stock sales amounts to nearly $50 million.
What’s equally as interesting as his sale of major financials is where Soros has shifted his money. At the same time he was selling bank stocks, he was acquiring some 884,000 shares (approx. $130 million) of Gold via the SPDR Gold Trust.
When a major global player with direct ties to the White House, Wall Street, and the banking system starts off-loading stocks and starts stacking gold, it suggests a very serious market move is set to happen. - SHTFPlan.com
View slideshow: Soros sells equities and buys gold even as stock markets reach four year highs
Gold is not the only commodity the Soros empire has invested in outside the equity markets. In March of 2011, Soros's Management Fund purchased enough grain elevators and food production sites to become the U.S.'s third largest conglomerate in the food industry.
Just a week ago, Reuters announced that the Federal Reserve had as recently as 2010, coordinated with major U.S. banks to prepare contingency plans for a complete financial collapse. Additionally, in June of this year, a rumorspread by credible sources indicated that Pimco and JP Morgan Chase were cancelling vacations for workers in preparation for an economic collapse.
While the stock markets are reaching new four year highs, the underlying foundation of these stocks are not very strong, and the low volume in the markets signals that very few retail investors are actually participating in the summer rally. Thus the low volume, positive trading that is taking place in July and August leaves the markets wide open for a massive correction, or at the very least, new selling pressures when seasonal volume picks up later in the month and into September.
The rich historically have more information available to them than the average investor does, and it has been prudent over time to follow closely what the major traders do. Thus it is extremely concerning to the American people, and for the future of the U.S. financial system, when global investor and political insider George Soros divests himself from all financial stocks, especially at a time when many of them they are trading at four year highs, to instead purchase gold in what appears to be a prelude for a new crash in equities, and a resumption of the gold bull market.
Examiner
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