George Soros is certainly a leader in the world of finance and he shares his financial view of the trending market while capturing a snapshot of today’s economic picture. As a young man, Soros left his birthplace during WWII when Nazi Germany occupied his homeland, Hungary. Alone, he fled Hungary and headed to England where he continued his education at the London School of Economics. Soon after graduation, he found it possible to venture to America where he completed his education in international finance and began to grow his wealth.
Soros didn’t become a billionaire overnight, but he continued his study of market fluctuations, the economy in every country, and the growth of countries supply and demand. He certainly didn’t become a billionaire from bad judgment calls and flaky decisions. Like an eagle, he views the entire market before making a decision. Of course, as the most recent article states, “The best way to invest like a billionaire is to, well, start with a billion dollars.” If only it were that simple. Soros didn’t start with any money, but he built his wealth from making good decisions and recording his decisive moves.
Today, the Soros Fund Management reports they dumped their shares in Chevron (CVX), Chesapeake Energy (CHK) and NRG Energy (NRG). With the energy prices so volatile this year, the last week in February will offer opportunities for the investor as many of the major players in the market will be reporting their earnings. Oil prices did surge last week after Saudi Arabia and Russia agreed on an oil production freeze in an attempt to boost the oil prices in the coming months. Unfortunately, this maneuver failed as Iran rejected the freeze and they have one-fifth of the world’s oil reserve. Iran’s revenge was to dump oil onto the global glut as a revenge tactic for the recent sanctions they received.
The oil market today leaves investors scratching their heads over “which-way-should-I-go?” The U.S. spends over one trillion dollars each year on energy, which accounts for 8.2% of the GDP. Each day the per capita energy consumption in the U.S., includes 2.5 gallons of oil, 16 pounds of coal, and 230 cubic feet of natural gas. Our residential usage of electricity is 12.1 kWh per person. The percentages listed above are an example of the usage pattern of the U.S. portion of the GDP. (Please consider peak usage times, may cause the results to fluctuate slightly.)
Goldman Sachs recently reported that when oil prices are this low for a long period, such as we are experiencing now, the pain is experienced way beyond the energy companies. It would behoove the public to review the earnings reports as they are released from the companies. Many company reports are expected to be rather gloomy.