George Soros (whom has recently been covered in The Street: TheStreet) has long been a prominent voice in the world of high finance, a man whose prowess of market prognostication has dazzled and enraged innumerable investors. So when the multi billionaire recently invested every single one of his hedge fund shares into only three top tier energy companies, people were naturally very curious what on earth he was getting up to. The three companies Soros decided to gamble so heavily upon included Chevron, NRG Energy and Chesapeake Energy.
George Soros (GeorgeSoros.com) is well known for more than just having a great deal of money, though. He is also known internationally for his politically savvy championship of justice, democratic ideals and human rights as well as organizing charities such as the OSF (Open Society Foundation). So naturally The Street reported investors are asking the question – “Does Soros know something we don’t?”
Information is king in the world of finance and investments, especially in the highly fluctuating energy sector. For instance, energy market shares have been taken for a insane roller coaster ride this year with the recent oil price surge. The surge itself was caused, primarily, due to the Russian and Saudi oil freeze, a collaboration which sought to close down oil production in a desperate attempt by the two countries to increase oil prices. More turbulence was brought into the affair due to Iran’s rejection of the partnership in the deal, given that Iran sits on the fifth largest reserve of oil in the entire world. Iran’s departure from the deal quickly caused oil prices to plummet and the market to once again jitter chaotically.
To further illustrate the state of the oil market consider how far prices have fallen. In 2014 the price for a barrel of oil sat at $ 110, as of last Friday the price for a barrel of oil has fallen to a scant $ 29.64 – that’s a drop of 73 percent in the span of less than a year. No small matter as this overarching market downturn has caused stocks to follow suite, such as the notable S & P 500 which has plummeted 5.82 percent this year alone (2016). To further illustrate the importance of the energy sector, the United States spends over 1.4 trillion (that’s one million million) dollars on energy alone and accounts for over nine million jobs. Again, no small matter. So whether or not Soros knows some key piece of insider information is unknown but what is certain is that investors should definitely keep their eyes on his interests well into the future.