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Billionaires Dumping Stocks, Economist Knows Why
#1
http://www.moneynews.com/MKTNews/billion...ce=taboola

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%.
"In 4 more OMao years you won't like how America looks....I guarantee it."
“When injustice becomes law, resistance becomes duty.” -- Thomas Jefferson
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#2
Not that the OP should have any credibility left but in case any lurkers are tempted to take any of it seriously:

"Anything I bought at $80 I don't like as well at $100. But if you're asking me if stocks are cheaper than other forms of investment, in my view the answer is yes. We're buying stocks now. But not because we expect them to go up. We're buying them because we think we're getting good value for them."

He said stocks are not "as cheap as they were four years ago" but "you get more for your money" compared to other investments. He added, "The dumbest investment, in my view, is a long-term government bond."

http://www.cnbc.com/id/100515743

Published: Monday, 4 Mar 2013 | 6:00 AM ET
Dave, proudly annoying members of pa2a.org since Sep 2012.
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#3
I expect market correction. Always. Still, over time, it is the best bet. I'm still ahead even with the giant slump in 08, so I'm staying put. The money is ONLY gained/lost when it's time to cash in, and I'm not cashing in for a few more decades.

If it all falls apart completely? Then money will be useless anyway so it won't matter how much you don't have.
Vampire pig man since September 2012
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#4
Camper;85359 Wrote:I expect market correction. Always. Still, over time, it is the best bet. I'm still ahead even with the giant slump in 08, so I'm staying put. The money is ONLY gained/lost when it's time to cash in, and I'm not cashing in for a few more decades.

If it all falls apart completely? Then money will be useless anyway so it won't matter how much you don't have.

The stock market is not the economy, and not the monetary system. If stocks go to zero, cash will be king, regardless of if the form is federal reserve notes, or birth control pills.
...
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#5
Dave;85337 Wrote:http://www.cnbc.com/id/100515743

Not to rain on your parade but if you believe CNBC then you have not paid any attention the past 2years. ABC, CNN, CNBC, NBC are lying through their teeth and the sheepel believe everything they say.

Dave;85337 Wrote:Not that the OP should have any credibility left but in case any lurkers are tempted to take any of it seriously:

Despite the fact that the news might be taken into a wrong perspective, I still value PP's posts.
"The colors, the colors. Has anybody seen my good friend John?" Then he lit up a banana and he hung up.

Al Bundy.
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#6
OP posts that WB is doing something, I post a video of WB today SAYING exactly the opposite but you still "value" it? Perfect! Does not get any better than that! Shrug
Dave, proudly annoying members of pa2a.org since Sep 2012.
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#7
Camper;85359 Wrote:I expect market correction. Always. Still, over time, it is the best bet. I'm still ahead even with the giant slump in 08, so I'm staying put. The money is ONLY gained/lost when it's time to cash in, and I'm not cashing in for a few more decades.

If it all falls apart completely? Then money will be useless anyway so it won't matter how much you don't have.

A few more decades? Aren't you, like, 60 something now?
Tongue

Justin
[Image: pafoasig.png]
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#8
JustinHEMI;85439 Wrote:
Camper;85359 Wrote:I expect market correction. Always. Still, over time, it is the best bet. I'm still ahead even with the giant slump in 08, so I'm staying put. The money is ONLY gained/lost when it's time to cash in, and I'm not cashing in for a few more decades.

If it all falls apart completely? Then money will be useless anyway so it won't matter how much you don't have.

A few more decades? Aren't you, like, 60 something now?
Tongue

Justin

LOL...I got 20 years to be 60...I'm savoring my transition to crotchety hood.....

RandomTask;85378 Wrote:
Camper;85359 Wrote:I expect market correction. Always. Still, over time, it is the best bet. I'm still ahead even with the giant slump in 08, so I'm staying put. The money is ONLY gained/lost when it's time to cash in, and I'm not cashing in for a few more decades.

If it all falls apart completely? Then money will be useless anyway so it won't matter how much you don't have.

The stock market is not the economy, and not the monetary system. If stocks go to zero, cash will be king, regardless of if the form is federal reserve notes, or birth control pills.

Retirement savings is what I meant. If the markets collapse and everything falls apart and currency is ambiguous, I do not intend to worry.
Vampire pig man since September 2012
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#9
Dave;85432 Wrote:OP posts that WB is doing something, I post a video of WB today SAYING exactly the opposite but you still "value" it? Perfect! Does not get any better than that! Shrug

watching your posts, i'de say the OP has more cred than you IMO. He posting information out there, regardless of your opinion that deserves some respect.He's taking the time to post it. Respect that!!

The market will collapse again, it can't be helped.IMO... I've posted this somewhere else but, i'll post it again.

IMO
There's too much money chasing the stock market, everybody is in it. it seemed to start in the 70's when blue collar workers started looking ahead towards retirement, They started to invest and that added more money to the system.

When you buy stocks, you're buying a piece of that company. Sure all that money chasing the stocks allows business to expand but the problem is they expanded off shore, The stock market is Hollow, it has no substance. It's only propt up by all the QE's which devalue our currency.

Us common Americans are all in, The billionaires have no loyalty (neither do a lot of working Americans,but that's another topic) their loyalty is to money and power, they'll just pack up and leave these shore when we've bled dry.

With the way our monitory system works, it's not IF it's WHEN..

The billionaires are selling, Ya they must really be dum Rolleyes. but you continue to buy Dave

Take a look at this chart i took a quick look for. look how long it goes along on an even keel, then it starts taking off
[Image: plwqo.jpg]
With the Second Amendment saying what it says, Why isn't the Federal Government Suing NY
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#10
The economy is tanking fast. The Stock Market is working 180 degrees out if phase. What's down is up, what's up us down. It's being subsidized by the Fed to the tune of $50+B per month.

It's not even a house if cards, tissue paper at best. Like .Com but worse.

JMHO. Those that choose to buy, buy up.
"In 4 more OMao years you won't like how America looks....I guarantee it."
“When injustice becomes law, resistance becomes duty.” -- Thomas Jefferson
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