Buffet dumping shares at an alarming rate

[midnight rambler]

http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/2012/08/29/id/450265?PROMO_CODE=110D8-1&utm_source=taboola

[JFN111]

The rich and successful tend to be contrarian's. The buy when others are selling and sell when the market is topping.

[StreetsOfGold]

The house of Rothschild, old movie showed exactly how this process occurs.

[mamboni]

http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/2012/08/29/id/450265?PROMO_CODE=110D8-1&utm_source=taboola

Deja Vu all over again. Can anyone confirm that this is true presently. The editor may have simply reproduced that article with today's day. Of course the stock market is in a bubble. But I've not brave enough to short it directly with QQQ or the like.

[JFN111]

Deja Vu all over again. Can anyone confirm that this is true presently. The editor may have simply reproduced that article with today's day. Of course the stock market is in a bubble. But I've not brave enough to short it directly with QQQ or the like.

I think there is a big difference between limiting one's exposure to the market and outright shorting it. The market will crash, one of these days, but whether it's tomorrow or two years from now who knows.

[Neuro]

I think there is a big difference between limiting one's exposure to the market and outright shorting it. The market will crash, one of these days, but whether it's tomorrow or two years from now who knows.
Buffet tends to know, he bought when DOW was sub 7k... He has to sell as the market is still in a positive mood, because his holdings are so massive, once he starts selling as the general mood is negative, he will sink the shares too much before he has even put a dent in his holdings. NWO PIG!

[gunDriller]

The rich and successful tend to be contrarian's. The buy when others are selling and sell when the market is topping.

"be fearful when others are greedy.

be greedy when others are fearful."

i think i've heard it said that way. that might be a Buffett quote.


in any case, if i had any stocks, i would definitely be selling now, in general.

it's a good time to buy selected mining stocks.

[Serpo]

read this and you will understand why

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/8_This_Is_Stunning,_I_Havent_Seen_Anything_Like_Th is_In_43_Years.html

[Neuro]

read this and you will understand why

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/8_This_Is_Stunning,_I_Havent_Seen_Anything_Like_Th is_In_43_Years.html
I did read it, but I didn't really understand why...

[Serpo]

This buying stampede in stocks is now 89 days in length, which is historic. Buying stampedes tend to last 17 to 25 sessions, with only 1 to 3 session pauses or pullbacks, before they exhaust themselves. There have been a few that have lasted 25 to 30 sessions, but it’s rare to have one go more than 30 sessions.



This one has gone 89 sessions as of today....
I did read it, but I didn't really understand why...

[Neuro]

This buying stampede in stocks is now 89 days in length, which is historic. Buying stampedes tend to last 17 to 25 sessions, with only 1 to 3 session pauses or pullbacks, before they exhaust themselves. There have been a few that have lasted 25 to 30 sessions, but it’s rare to have one go more than 30 sessions.



This one has gone 89 sessions as of today....
So is the implication that Buffet has sold early this time because this stampede has gone longer than usual?

[Spectrism]

-from the link....

=======================

Wiedemer calmly laid out a clear explanation of why a large drop of some sort is a virtual certainty.

It starts with the reckless strategy of the Federal Reserve to print a massive amount of money out of thin air in an attempt to stimulate the economy.

“These funds haven’t made it into the markets and the economy yet. But it is a mathematical certainty that once the dam breaks, and this money passes through the reserves and hits the markets, inflation will surge,” said Wiedemer.

“Once you hit 10% inflation, 10-year Treasury bonds lose about half their value. And by 20%, any value is all but gone. Interest rates will increase dramatically at this point, and that will cause real estate values to collapse. And the stock market will collapse as a consequence of these other problems.”

See the Proof: Get the Full Interview by Clicking Here Now (http://w3.newsmax.com/a/aftershockb/video47b.cfm?promo_code=110D8-1).

And this is where Wiedemer explains why Buffett, Paulson, and Soros could be dumping U.S. stocks:

“Companies will be spending more money on borrowing costs than business expansion costs. That means lower profit margins, lower dividends, and less hiring. Plus, more layoffs.”

No investors, let alone billionaires, will want to own stocks with falling profit margins and shrinking dividends. So if that’s why Buffett, Paulson, and Soros are dumping stocks, they have decided to cash out early and leave Main Street investors holding the bag.

But Main Street investors don’t have to see their investment and retirement accounts decimated for the second time in five years.

Wiedemer’s video interview also contains a comprehensive blueprint for economic survival that’s really commanding global attention.

Now viewed over 40 million times, it was initially screened for a relatively small, private audience. But the overwhelming amount of feedback from viewers who felt the interview should be widely publicized came with consequences, as various online networks repeatedly shut it down and affiliates refused to house the content.

“People were sitting up and taking notice, and they begged us to make the interview public so they could easily share it,” said Newsmax Financial Publisher Aaron DeHoog.

“Our real concern,” DeHoog added, “is the effect even if only half of Wiedemer’s predictions come true.

“That’s a scary thought for sure. But we want the average American to be prepared, and that is why we will continue to push this video to as many outlets as we can. We want the word to spread.”

Editor’s Note: For a limited time, Newsmax is showing the Wiedemer interview and supplying viewers with copies of the new, updated Aftershock book including the final, unpublished chapter. Go here to view it now. (http://w3.newsmax.com/a/aftershockb/video47b.cfm?promo_code=110D8-1)

==============


So if this is true, the big money figures stocks will surge with inflation only to crumple when the bond markets crash driving up interest rates. They are not risking their holdings to gain the expect surge because they must figure the crash can happen soon after without warning.

[mick silver]

What Buffett Has Forgotten, But We Should Remember
By Staff Report
http://www.thedailybell.com/images/feedbackicon2.jpg
3
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Buffett says economy on mend, bonds 'terrible' investment ... Warren Buffett (http://www.thedailybell.com/floatWindow.cfm?id=2867) said the U.S. economy is gradually improving, but low interest rates have made bonds "terrible investments" while stocks remain "reasonably priced." Speaking on CNBC (http://www.thedailybell.com/floatWindow.cfm?id=3458) television on Monday, the chairman and chief executive of Berkshire Hathaway Inc. said the economy is benefiting from an upturn in areas that had not previously performed well ... Buffett spoke on CNBC after Berkshire's annual shareholders meeting over the weekend in Omaha, Nebraska. The world's fourth-richest person said low benchmark interest rates, including overnight rates that Federal Reserve (http://www.thedailybell.com/floatWindow.cfm?id=1855) Chairman Ben Bernanke (http://www.thedailybell.com/floatWindow.cfm?id=2008) has kept at effectively zero since late 2008, can help stimulate demand. – Reuters (http://www.thedailybell.com/floatWindow.cfm?id=2551)
Dominant Social Theme: Okay, we had a rough patch, but things are looking up.
Free-Market Analysis: This article makes sure to remind us that Warren Buffett is the world's fourth richest man. But wealth does not necessarily create wisdom.
We remember when Buffett was technically broke ... certainly right after the financial crisis that began in 2008. Then with almost every other Goliath, Buffet was busted. Briefly, his net worth was probably negative.
It was money printing that caused the financial crisis, in our view ... money printing and low rates. Since then, there has been more of the same and gradually a reflating bubble. This is what Buffett and others are calling "a recovery."
It has been driven by central bank (http://www.thedailybell.com/floatWindow.cfm?id=2958) Super-Money. Apparently, the Federal Reserve in particular sent trillions around the world in so-called "short-term" loans that have never been repaid. Supposedly, Ben Bernanke provided some US$16 trillion in liquidity in a single weekend.
So it is worth remembering, when listening to someone like Buffett – as wise as he is – that only a few years ago he was basically broke. If the system had shattered so would his wealth.
Here's more from the article:
Many investors have also been drawn to bonds because their prices rise as rates fall, and Buffett said they could get their comeuppance when that process reverses.
"Bonds, they're terrible investments now," Buffett said. "That will change at some point, and when it changes, people could lose a lot of money if they're in long-term bonds."
He said stocks, in contrast, are "reasonably priced," though he continues to shy away from sectors such as media, where he cannot reasonably predict who will thrive in the long run.
"It's a lot easier for me to predict that ketchup will be doing well or Coca-Cola will be doing well in 10 years," Buffett said, referring to Berkshire's pending takeover with Brazilian investment firm 3G Capital of H.J. Heinz Co (HNZ.N), and Berkshire's large investment in Coca-Cola Co (KO.N) stock.
... Speaking on Monday, Buffett called Bernanke "a gutsy guy" who has "done very, very well in terms of what he has done for the United States."
Last week, the Fed said it would continue to buy $85 billion of bonds per month to spur growth, and it will step up purchases if needed. The economy grew at a 2.5 percent annualized rate in the first quarter.
Buffett is probably right about bonds, just as he is often about stocks. But all his analysis is focused around interest rates and Ben Bernanke actions as regards money printing. He even calls Bernanke a "gutsy guy."
The "Sage of Omaha" is known as an investment guru but, unfortunately, in this latest financial crisis we have seen more clearly than ever that nothing much else matters to the economy than the ability to print money and lots of it.
When Buffet says the stock market is reasonably priced, we have to wonder exactly what he means. Is he speaking of value or of Fed pump priming?
This is our larger point as well when it comes to investing. One needs to watch central bankers and the dominant social themes (http://www.thedailybell.com/floatWindow.cfm?id=652) they promote just as much as one watches the market itself.
And it is a melancholy fact that if one had merely restricted one's investments to the military-industrial complex (http://www.thedailybell.com/floatWindow.cfm?id=1864) and Intel adjuncts such as Google and Facebook, one probably would have beaten the market hands down.
Investments these days are subject to a great struggle between manipulation and free-market pushback. What you invest in depends on what you believe the outcome of this struggle will be and the timeline as well.
Buffett, in our view, does consumers no favor by not spelling out larger market and governmental forces at play in the marketplace. By focusing on value, he is leading investors into believing that mathematical analyses and historical performance are the main drivers of investing.
Conclusion: But let us remember the financial crisis of 2008 when even Buffet found out otherwise.

[Serpo]

So is the implication that Buffet has sold early this time because this stampede has gone longer than usual?

Well if he is selling across the board then yes.


This has been pumped by the FED ,people would of told him what they are doing(remember he is doing good (running down gold ect)) and now he sells .

He loves investing in and so supporting illuminists.

[Serpo]

Billionaires Dumping Stocks, Economist Knows Why

Tuesday, 07 May 2013 11:22 PM
By Newsmax Wires


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Despite the 6.5% stock market rally over the last three months, a handful of billionaires are quietly dumping their American stocks . . . and fast.

Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time, is dumping shares at an alarming rate. He recently complained of “disappointing performance” in dyed-in-the-wool American companies like Johnson & Johnson, Procter & Gamble, and Kraft Foods.

In the latest filing for Buffett’s holding company Berkshire Hathaway, Buffett has been drastically reducing his exposure to stocks that depend on consumer purchasing habits. Berkshire sold roughly 19 million shares of Johnson & Johnson, and reduced his overall stake in “consumer product stocks” by 21%. Berkshire Hathaway also sold its entire stake in California-based computer parts supplier Intel.

With 70% of the U.S. economy dependent on consumer spending, Buffett’s apparent lack of faith in these companies’ future prospects is worrisome.

Unfortunately Buffett isn’t alone.

Fellow billionaire John Paulson, who made a fortune betting on the subprime mortgage meltdown, is clearing out of U.S. stocks too. During the second quarter of the year, Paulson’s hedge fund, Paulson & Co., dumped 14 million shares of JPMorgan Chase. The fund also dumped its entire position in discount retailer Family Dollar and consumer-goods maker Sara Lee.

Finally, billionaire George Soros recently sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares.

So why are these billionaires dumping their shares of U.S. companies?

After all, the stock market is still in the midst of its historic rally. Real estate prices have finally leveled off, and for the first time in five years are actually rising in many locations. And the unemployment rate seems to have stabilized.

It’s very likely that these professional investors are aware of specific research that points toward a massive market correction, as much as 90%.

One such person publishing this research is Robert Wiedemer, an esteemed economist and author of the New York Times best-selling book Aftershock.

Editor’s Note: .

Before you dismiss the possibility of a 90% drop in the stock market as unrealistic, consider Wiedemer’s credentials.

In 2006, Wiedemer and a team of economists accurately predicted the collapse of the U.S. housing market, equity markets, and consumer spending that almost sank the United States. They published their research in the book America’s Bubble Economy.

The book quickly grabbed headlines for its accuracy in predicting what many thought would never happen, and quickly established Wiedemer as a trusted voice.

A columnist at Dow Jones said the book was “one of those rare finds that not only predicted the subprime credit meltdown well in advance, it offered Main Street investors a winning strategy that helped avoid the forty percent losses that followed . . .”

The chief investment strategist at Standard & Poor’s said that Wiedemer’s track record “demands our attention.”

And finally, the former CFO of Goldman Sachs said Wiedemer’s “prescience in (his) first book lends credence to the new warnings. This book deserves our attention.”

In the interview for his latest blockbuster Aftershock, Wiedemer says the 90% drop in the stock market is “a worst-case scenario,” and the host quickly challenged this claim.

Wiedemer calmly laid out a clear explanation of why a large drop of some sort is a virtual certainty.

It starts with the reckless strategy of the Federal Reserve to print a massive amount of money out of thin air in an attempt to stimulate the economy.

“These funds haven’t made it into the markets and the economy yet. But it is a mathematical certainty that once the dam breaks, and this money passes through the reserves and hits the markets, inflation will surge,” said Wiedemer.

“Once you hit 10% inflation, 10-year Treasury bonds lose about half their value. And by 20%, any value is all but gone. Interest rates will increase dramatically at this point, and that will cause real estate values to collapse. And the stock market will collapse as a consequence of these other problems.”

See the Proof: .

And this is where Wiedemer explains why Buffett, Paulson, and Soros could be dumping U.S. stocks:

“Companies will be spending more money on borrowing costs than business expansion costs. That means lower profit margins, lower dividends, and less hiring. Plus, more layoffs.”

No investors, let alone billionaires, will want to own stocks with falling profit margins and shrinking dividends. So if that’s why Buffett, Paulson, and Soros are dumping stocks, they have decided to cash out early and leave Main Street investors holding the bag.

But Main Street investors don’t have to see their investment and retirement accounts decimated for the second time in five years.

Wiedemer’s video interview also contains a comprehensive blueprint for economic survival that’s really commanding global attention.

Now viewed over 40 million times, it was initially screened for a relatively small, private audience. But the overwhelming amount of feedback from viewers who felt the interview should be widely publicized came with consequences, as various online networks repeatedly shut it down and affiliates refused to house the content.

“People were sitting up and taking notice, and they begged us to make the interview public so they could easily share it,” said Newsmax Financial Publisher Aaron DeHoog.

“Our real concern,” DeHoog added, “is the effect even if only half of Wiedemer’s predictions come true.

“That’s a scary thought for sure. But we want the average American to be prepared, and that is why we will continue to push this video to as many outlets as we can. We want the word to spread.”



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