pa2a.org


Share Thread:  
Billionaires Dumping Stocks, Economist Knows Why
#1
http://www.moneynews.com/Outbrain/billio...ODE=FE8A-1

Billionaires Dumping Stocks, Economist Knows Why

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: Wiedemer Gives Proof for His Dire Predictions in This Shocking Interview.

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: Get the Full Interview by Clicking Here Now.

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.”


Read more: Billionaires Dumping Stocks, Economist Knows Why

On Pay day I am a hundredaire and by the end of the month broke again

so i have no idea how a Billionaire operate the rest of the month let alone having that much wealth to play games with investing.
White Feather, proud to be a member of pa2a.org since Sep 2012.
Reply
#2
Ohhh... they gotta do something with all that worthless Weimar Federal Reserve toilet paper, after they sell those stocks... [Image: smiley-face-whistle-2.gif]


[Image: au3650nyb.gif]

[Image: ag00-pres.gif]
The War Wagon, proud to be a member of pa2a.org since Sep 2012. Anim_banana

[Image: won-rev-big-2.jpg]
Reply
#3
The intent of the Federal reserve has ZERO to do with "stimulating" the economy. You'd really have to be a sucker to believe that. Stimulus doesn't "stimulate", it INFLATES.

It's all to provide "stack of cards" support for the Olection. That money is going somewhere with the specific intent to keep the stock market from collapsing, for now. It is so artificial and transparent it's ludicrous.

The claim that it will help the housing market is a joke. Only jobs will help the housing market, especially with all the new regs they've put in place to stifle borrowing. If people aren't looking to buy when rates are 3.25%, another .25-.5% isn't going to matter.
"In 4 more OMao years you won't like how America looks....I guarantee it."
“When injustice becomes law, resistance becomes duty.” -- Thomas Jefferson
Reply
#4
Things are going to get extremely interesting if the mighty O wins (or steals) re-election.
Reply
#5
I have a fair amount of silver, but even though its gone up a large amount since I acquired it I don't feel like its increasing in buying power as much as the dollar is losing its buying power and silver increases as it dies...I'm interested in watching what happens now that they're doing QE infinity.
The forum poster formerly known as Emoticon...
Reply
#6
Emoticon;11054 Wrote:I have a fair amount of silver, but even though its gone up a large amount since I acquired it I don't feel like its increasing in buying power as much as the dollar is losing its buying power and silver increases as it dies...I'm interested in watching what happens now that they're doing QE infinity.

Japan is on QE8 and now have a 20 year slump. The worst possible thing the FED could have done, they did.

3 Times now.
"In 4 more OMao years you won't like how America looks....I guarantee it."
“When injustice becomes law, resistance becomes duty.” -- Thomas Jefferson
Reply
#7
There is a possibility of a perfect storm of market crashes if Obama is reelected.

More Boomers retiring and getting out of the market
Cap gains tax increase.
Expiration of the Bush tax cuts and possibly even higher taxes on the "wealthy"
Obama administration continuing anti-business measures
Oil prices skyrocketing due to increased Mid East turmoil and purposefully high prices to favor green technology.

Lots of people (me included) will be dumping stocks as fast as they can in October if it even looks like Obama could win. If the market crashes two weeks before the election and it prevents Obama from winning, it will be worth the hit.
Reply
#8
Seen someone had a lot of AK ammo for sale. Think I'll nab up as much of it as I can afford too.

I still think we are going to see something bad happen in my life time. Be it tomorrow or in a couple more years. Something has to give. And when it does, it isn't going to be pretty.
[Image: 123axip.png]
In the beginning a Patriot is a scarce man, Hated, Feared and Scorned; but in time, when his cause succeeds, the timid join them, because then it cost nothing to be a Patriot.... Mark Twain.
Reply
#9
The wall street boys have been playing in the derivitives market big time again, and when it crashes again, they know that there WILL NOT be another bailout.

The big players know what's coming and are getting out while there is still time to get out, the thing to watch is where are they moving their money too, these people are not super wealthy because they are stupid.
When all around you is falling apart, grab another beer and smile.
Reply
#10
Coops;11091 Wrote:There is a possibility of a perfect storm of market crashes if Obama is reelected.

More Boomers retiring and getting out of the market
Cap gains tax increase.
Expiration of the Bush tax cuts and possibly even higher taxes on the "wealthy"
Obama administration continuing anti-business measures
Oil prices skyrocketing due to increased Mid East turmoil and purposefully high prices to favor green technology.

Lots of people (me included) will be dumping stocks as fast as they can in October if it even looks like Obama could win. If the market crashes two weeks before the election and it prevents Obama from winning, it will be worth the hit.

Boomers getting out of the market? Where did you read that? Everything I've read says that with the exact opposite. Putting your money in the bank today means you lose every year due to the invisible inflation tax as long as inflation outpaces the interest rate. Part of the reason the fed is keeping interest rates low is to FORCE the regular joe into the market so it can leverage OUR money to help bail out this economy because the Fed's ability to counteract this crash is already weak. Everything I've read says with Soc Sec running out of money and Boomers gambling in the markets with their nest eggs this crash is going to ripple down the line as people can't retire because they've lost it in the markets.
The forum poster formerly known as Emoticon...
Reply






Possibly Related Threads...
Thread Author Replies Views Last Post
  Billionaires Dumping Stocks, Economist Knows Why Pocketprotector 29 2,203 03-06-2013, 08:50 AM
Last Post: Dave
  PIMCO - Stocks & Bonds DOA until 2022 billamj 0 490 11-29-2012, 10:22 AM
Last Post: billamj
  Obama Talks Fiscal Cliff With Noted Economist Al Sharpton middlefinger 7 1,057 11-18-2012, 04:58 AM
Last Post: Emoticon
  Billionaires Dumping Stocks, Economist Knows Why Pocketprotector 1 576 10-10-2012, 05:18 PM
Last Post: MrPeanut
  Economist: Obama Misrepresenting My Study on Romney Tax Plan... Pocketprotector 0 391 10-08-2012, 10:29 AM
Last Post: Pocketprotector



Users browsing this thread: 1 Guest(s)

Software by MyBB, © 2002-2015 MyBB Group.
Template by Modogodo Design.