The world economy seems to have begun to rebound from it’s low point during the 2008 crash. However, some question whether or not this recovery is likely to last. George Soros very much questions the economic stability of the current recovery. He actually sees things that appear similar to the conditions of the world economy as the crash was looming. He gave this warning to investors, when he spoke at a conference in Colombo, Sri Lanka. There are some pieces of evidence that one can point to with this. On one past occasion, he has predicted economic disaster that didn’t end up coming true though. However, George Soros is still a very reputable person according to Bloomberg in the investment world. He has become a billionaire through his investments, and he really has an exceptional degree of skill with forecasting the path of investments.
China has gone through a process of industrialization. While there is still quite a lot of manufacturing taking place in China, the economy has changed from this model. In fact, the Chinese economy has become more consumerist oriented rather than production oriented. This transition also has happened in other countries, including the United States. However, China doesn’t seem like it is able to navigate these waters. As a result, their economy seems to be floundering somewhat. The Chinese currency does not have as much value as it used to.
The economic instability has been noted by people other than George Soros. In fact, well known measurements for economic instability have increased in recent times. The Chicago Board Options Exchange Volatility Index is appearing to be on the rise. This index has gone up 13 percent. This particular measurement holds a lot of credibility amongst investors, and it has been called the “fear gauge”. The Merrill Lynch Index of Anticipated Price Swings appears to be rising, as well. This index has risen by 5.7 percent. Another measure that has been affected by the recent signs in the economy is the Nikkei Index. The Nikkei Index measures how volatile the stock markets are in Japan. This index seems to be taking a sharp rise. It has risen 43 percent! This is a truly startling rise in the level of instability.
Hopefully, there isn’t going to be another economic crash. However, George Soros seems to point to a number of different troubling signs in the economic climate. The indexes of instability also seem to be picking up on something that could be potentially on the horizon. These two things together should serve as a warning to investors throughout the world to brace for the possibility of another crash. George Soros believes that if the economy crashes again, it has the potential to be a serious crash.