Soros Investment Tip No. 11: Open Access To Information And Look At The Macro Economy

Soros' invest-first, investigate-later approach to investing is not a blind, gambling operation, but rather a considered assumption, an investment decision made after looking at the macroeconomic environment and gathering a wide range of information, in his view an economic decision to be precise.


There are long-term, medium-term and short-term trends in the price movements of traded instruments. Short-term fluctuations in the market are crucial at turning points in the situation, but when a trend is already established, their role is minimal. As Soros' huge investment fund, a macro grasp of the economic operating environment is essential to achieve good returns. Only by standing tall can we see far enough to gain insight into local changes in the market. It is only by standing tall that we can see far ahead and see local changes in the market. This is one of the secrets of Soros' ability to win by one and lose by ten.
For example, Soros looks for sudden changes in the stock market, focusing not on a company's next quarter's earnings, for example, but on broader social, economic and political factors. When following a particular sector or species, he always considered it in the context of the overall macroeconomic theme involving complex international trade conditions. The shift in the banking sector in the 1970s marked the beginning of a massive lending boom. This boom facilitated the expansion and consolidation of us companies in the 1980s. In accordance with his theory of interaction, Soros identified the beginning of the boom in the process of boom and bust.


Soros had extensive access to information and extraordinary networking skills. He was able to find the right people among his many friends and learn from them about macroeconomic trends around the world, and he had a great deal to talk about. He values the views expressed by other international financial authorities and their decisions.
If event a happens, it will be followed by b, and then later by c. Again, analyzing this complex information, his philosophical world view and methodology gives him a unique understanding of the causality of the world economy, which is in fact one of the most important investment secrets behind Soros' success.