George Soros is not just any investor. He is possibly one of the most noted financial experts in the world. That is something that happens when a person is able to earn themselves a tidy profit of $1 billion in a single day. A task he accomplished in 1992 in England on a day now dubbed as “Black Wednesday.” So, it only makes sense that many cautious investors look to his actions to determine what their own investment moves should be. These facts are discussed in a recent article on the investment website The Street.
The article states that Soros’ investment group, Soros Fund Management, just recently dropped all of its shares in three notable energy companies. It is well known to everyone that the oil market has had its share of problems over the last couple of years. An overabundance in oil production coupled with a reduced worldwide need for oil has lowered barrel prices 73 percent from where they were in 2014.
While these lower prices are great news for the average consumer, they have been devastating to many companies within the oil sector. This could eventually lead to employment woes in the U.S. as over 5 percent of the country in employed in the energy industry. Recent news has not been good for the industry, according to the Street article, including a decision by the World Bank to reconsider its previous forecast of increasing barrel prices.
It is hard for anyone to not view the move away from the industry by a savvy investor as more signs of bad news for energy corporations. Soros scores a self-made rating of 10 from Forbes Magazine, their highest rating possible. His story of being a child of Jewish heritage surviving WWII, migrating to England and building a fortune that currently stands at an estimated $24.4 billion (with his investment firm currently showing $29 billion in assets) is one that proves his financial wisdom and foresight. Many other investors agree and are happy to use his example to determine their own moves. This is why so many in the media and in the financial district are keeping a close eye on how the market responds.
It is unknown if Soros will prove correct with his decision to move on to what he considers more promising markets. Earnings reports from many energy companies are due within the next few days. Their numbers may shed light on whether it is safe to continue investing in energy, or if everyone should follow Soros’ lead and look for profit elsewhere.