Morgan Stanley Chief Executive Officer James Gorman talks about George Soros’s prediction that the Euro Collapse is near. Note, Soros has made these Euro Collapse dire forecast commentseral years including one in 2016 which urged immediate action or face collapse. Is Soros too early (and DB or Italy will nail the coffin) or just wrong? You decide
Gorman Calls George Soros Comments On Euro Collapse Ridiculous
We’re seeing some positive data and we saw that yesterday out of Germany for example around CPI around the jobless rate. All the political machinations in Italy and Spain distracting us from the fundamentals. Or is there a broader concern that you have about the eurozone. You know it’s been interesting the last couple of years the thing I’ve focused on this week we have extraordinary global synchronized growth everywhere from Japan through to the U.S. doing well China doing very well Southeast Asia across continental Europe group global synchronized growth. We’ve had these political eruptions which is what has disrupted that whether it was Brexit.
What’s going on now in Italy in Spain with the coming elections. Angela Merkel trying to pull together the coalition. So it’s just it’s it’s almost competition between inexorable corporate growth earnings improvement economic strength against political instability and the rise of populism and the latest at Taiyuan you know mini crisis if you will which lasted all of about 24 hours. It would seem is just another manifestation of that problem.
It sounds like then you would take a potentially more nuanced view than George Soros who said that he thinks we’re facing potentially another global financial crisis and that the eurozone itself faces an existential threat. Yeah I think honestly I think that’s ridiculous. I don’t think we’re facing an existential threat at all.
I think this has been something which has been playing out over 10 or 15 years and there is essentially in many countries around the world a sense that the average performance of the economy is much better than the individual performance of the citizens in that country.
And that’s what’s given rise to the wave of populism that this has been a long evolving political trend that we’re facing. So no I don’t think the eurozone is in jeopardy. So how do investors position in this environment. Listen you don’t react to 24 hour news. You know the 10 year in the US moved down 30 basis points more or less overnight and then rebounded.
You don’t respond as an investor we are not traders right? These are hedge funds, but your average investor out there is trying to preserve that capital for the long term generate decent returns. That’s not something you respond to. My reaction is you don’t you watch it for.