Renowned hedge fund billionaire George Soros fears for Europe’s future following the Brexit vote. According to a news report published in Forbes magazine on June 27 2016, Soros had predicted that a “Yes” vote to succeed from the EU would cause the UK pound to plunge, in a move that will spark a sell off on stock market across Europe and the rest of the world. A day after the referendum vote, the British currency dropped to levels last witnessed 30 years ago, global markets followed suite with panic selling gripping the major indices in Europe. Shares of some British banks dropped by as much as 20% as the troubled persisted.
The shares of leading blue chip lenders such as Lloyd’s and Barclays remained low on the first day of trading after the vote. Across the Atlantic, S&P 500 index closed 3.6% down on the aftermath. Soros made big fortune estimated at over $1 billion during the “Black Wednesday” event of September 16, 1992 when he correctly positioned the market for a pound selloff. His net worth is currently estimated by at $25 billion. Although Soros made money with his Brexit prediction and from a string of recent bearish trades, he has warned policy makers, investors and politicians to be weary of Brexit. He fears that the net effect of the Brexit vote could lead to the breakup of the European Union.
In the worst case scenario, the disintegration could lead to the breakup of the United Kingdom and cause a national economic calamity such as the one witnessed during the 2007-2008 economic crisis. Some of his warnings have been published in leading journals such as the Project Syndicate. The highly opinionated billionaire born in Hungary fled the country following the NAZI occupation to pursue education in the UK. Today, he is a fierce critic of President Donald Trump and is a longtime supporter of the Democratic Party and liberal causes. According to a Politico article published on July 2016, Soros made a huge comeback in the 2016 election cycle with an announcement of a huge donation.
He committed $25 million to support the Democratic presidential nominee for president, Hillary Clinton and other candidates downstream. Mr. Michael Vachon, Soros top advisor told the press that the decision taken by his boss was mainly as a result of the high political stakes, consistent support for the Democratic Party and affection with Clinton’s candidacy. On philanthropy, Soros is a vocal supporter of disability rights, international justice, counterterrorism and women. According to an excerpt on Inside Philanthropy, George Soros is a major donor to various civil and human rights organizations, among them the Human Rights Institute, UNICEF and the International Crisis Group.
Visit his profile on twitter.com.