Wednesday , 20 September 2017


Russell Asks: “What’s Up? What Do Buffett, Paulson & Soros Know That We Don’t?”

In a world rife with duplicity, it is downright dangerous to listen to what motivated,stockmarket powerful people say. [As such,] never has the advice: “Watch what they do” been so important. So, what are some of them doing?

So writes Monty Pelerin (www.economicnoise.com) in edited excerpts from his original post* entitled Watch What They Do!.

This post is presented compliments of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and the FREE Intelligence Report newsletter (see sample here register here). The post may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. You can also Follow the munKNEE” daily posts via Twitter or Facebook. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Pelerin goes on to say in further edited excerpts:

According to King World News in an interview with Richard Russell, some very important people may be preparing for an economic Armageddon:

“What do billionaires Warren Buffett, John Paulson, and George Soros know that you and I don’t know?  I don’t have the answer, but I do know what these billionaires are doing.  They, all three, are selling consumer-oriented stocks.

Warren Buffett has been a cheerleader for US stocks all along but in the latest filing, Buffett has been drastically cutting back on his exposure to consumer stocks. Berkshire has reduced its overall stake in consumer product stocks by 21%, including Kraft and Procter and Gamble.  He has also cleared out his entire position in Intel.  He has sold 10,000 shares of GM and 597,000 shares of IBM – and roughly 19 million shares of Johnson and Johnson.

John Paulson dumped 14 million shares of JP Morgan and dumped his entire position in Family Dollar and consumer goods maker Sara Lee.

George Soros sold nearly all his bank stocks including JP Morgan, Citigroup and Goldman Sachs.  So I don’t know exactly what the billionaires are thinking, but I do see what they’re doing — they are avoiding consumer stocks and building up cash.

One obvious answer to what the billionaires are thinking has to do with America’s consumers. Consumer buying makes up roughly 70 percent of the nation’s Gross Domestic Product and,

  • with interest rates near zero,
  • with jobs hard to find,
  • with unemployment up, and
  • with savings scarce,

the billionaires are thinking that consumption is heading down and that America’s consumers are close to going on strike.”

Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.

*http://www.economicnoise.com/2013/04/21/watch-what-they-do/

Related Articles:

1. Stock Market Crash Coming, Then More QE & Then Commodity Price Spikes

stockcrashimages-1

Unknowingly, with QE Infinity, Bernanke has put in motion a runaway move in the stock market that will end in some kind of crash this summer. The crash will cause Bernanke to double down on QE which will trigger a spike in commodity prices. Let me explain my rationale.

2. Don’t Get Greedy! The Greedometer Gauge Has a 100% Track Record – Here’s Its Most Recent S&P 500 Forecast

investing hold buy sell

In the 7 years that the Greedometer has been used there have been zero missed calls, and zero false alarms.  The 7th warning began in January and in late February,the Greedometer gauge reached an epic 7900rpm which is marginally higher than the 7700rpm maximum reading seen 3 months prior to the S&P500 peak in October 2007. [This article outlines the development and successes of the Greedometer and the new Mini Greedometer and what they are predicting for the stock market in 2013.] Words: 1420

3. It’s Time to Apply the “Greater Fool Theory” and Sell Your Winners to All Those Fools

investing hold buy sell

The Dow has surpassed its all-time record high – set in October 2007 – and the S&P 500 is not far behind? Is this the early stage of another great bull market? Let’s look back at the two previous times when the S&P 500 set new all-time highs and see if we can learn something. Wait…first put your “this time it’s different” glasses on. OK, let’s go. Words: 430; Charts: 1

4. Don’t Ignore This Fact: “Greedometer Gauge” Signals S&P 500 Drop to the 500s by July-August, 2013!

stock-market-tsunami

The S&P500 is likely to achieve a secular (long term) peak this month, then drop to the 500s by July-August 2013. This article explains why. Words: 180

5. This Metric Strongly Suggests a Major Correction in the S&P 500 Could Be Coming

stockcrashimages-1

History shows that when investors experience a rapid decline in the amount of available cash in their brokerage account to spend/invest quickly such “negative net worth” leads to major corrections in the stock market. Currently such is the case so can we expect another such decline or will it be different this time?

6. Dr. Nu Yu: Formation of S&P 500′s “Three Peaks & a Domed House” Pattern On Course

economic_growth

The S&P 500 is on its way to building a “Domed House” and to challenge multi-year highs, or even all-time highs, in the process. Based on the forecast of my proprietary Long Wave Index, the broad market should be in a short-term bullish time-window until March 21st/13 by which time the “roof” phase of the formation should be complete with the S&P 500 having reached a projected peak of 1570. Words: 634; Charts: 4

7.  I’m “making the call” for a market correction of 50% – or more!!

stockcrashimages-1

I don’t relish the job of constantly pointing out the risks to the equity markets but since few on Wall Street seem willing (or able) to do this, I’m “making the call” for a market correction, as enough variables have aligned to indicate a high likelihood of stocks heading downwards from here. Words: 1203; Charts: 6

8. Watch Out For Falling Stocks! Here’s Why

stockcrashimages-1

The stock markets make no sense. They have literally lost touch with reality. Divergences between fundamentals, confidence and the valuation of markets are large [and, as such,] cannot last for long….The only  question is how…and how quickly….this correction occurs. Words: 261

9. You Need to Stay in the Stock Market Despite an Impending Economic Collapse – Here’s Why

investing hold buy sell

You need to stay in markets despite an impending economic collapse. [Really?! Yes, really.] Normally such an expectation would be addressed by getting out of the way of the oncoming disaster and taking ones chips off the table [but,] in this situation, there is no place to hide. Low-risk assets, like bonds and near-cash, produce little to no return…and the threat of rising interest rates and inflation make them dangerous.  Higher risk assets are unavoidable, given current conditions. [Let me explain further.] Words: 830

10. You Can Insure Your Portfolio From Potential Capital Loss – Here’s How

investing

Most everything you’ve heard about investing from the mainstream media, your mutual fund advisor and your tax accountant is a lie. You’ve been told…that the entire point of portfolio diversification is to mitigate downside risk yet when the market experiences the inevitable decline, every sector pushes significantly lower – and your “diversified” portfolio suffers as a result, [right? Well, there IS a better way.] Hear me out. Words: 895

11. The U.S. Stock Market Is Overvalued By More Than 50%! Here’s Why

stockcrashimages-1

Key stock indices are becoming significantly overpriced. The value of the U.S. stock market stands at about 133% of GDP. The average for the past 60 years has been around 82%. By this measure, the U.S. stock market is overvalued by more than 50%! Words: 398

12. Stop! Don’t Forget Market Risk – Remember What Happened in 2000 & 2007/8.

stockcrashimages-1

Investors are more bullish now than at any time since 2002 but the current rally has not been fueled by improved prospects of actual growth and wealth creation. Instead, it’s mostly due to:

  1. investors desperate for income denied them elsewhere by central bank policies;
  2. printed stimulus cash seeking a home and
  3. sheer technical momentum

but nowhere do they seem to be considering market risk – the risk that your investment will lose value because it gets dragged down in a falling market. Words: 615

13. Insider Trading Suggests That a Market Crash Is Coming

stockcrashimages-1

What you are about to read below is startling. •Every time that the market has fallen in recent years, insiders have been able to get out ahead of time… •[What] is so alarming [this time round is] that corporate insiders are selling nine times as many shares as they are buying right now. •In addition, some extraordinarily large bets have just been made that will only pay off if the financial markets in the U.S. crash by the end of April. •So what does all of this mean? [Could it be that they] have insider knowledge that a market crash is coming? Evaluate the evidence below and decide for yourself. Words: 570

14. This False Stock Market Bubble Will Burst, Major Banks Will Fail & the Financial System Will Implode! Here’s Why

economic-train-wreck

At some point we are going to see another wave of panic hit the financial markets like we saw back in 2008.  The false stock market bubble will burst, major banks will fail and the financial system will implode.  It could unfold something like this: Words: 660

15. Ignore Wall Street Cheerleaders: Market Technicals, Fundamentals & Other Info Says Otherwise!

investing2

[In spite of what] the typical Wall Street cheerleaders, I mean strategists, are predicting, we see the equity market ever more closer to its cyclical top, miners about to retest a major bottom and hard assets with a new catalyst. [This article analyzes 9 pieces of information, complete with charts, that show what is actually going on in the marketplace at this point in time and what the short-term future holds.] Words: 930; Charts: 8

16. 5 Sound Reasons Investors Would Be Better Off On the Sidelines Than In the Market

Investing financial markets

New year festivities have continued on the stock market even as the Christmas trees have been put away. The “death of the fiscal cliff,” not horrible job numbers and supportive comments from Mario Draghi on the other side of the pond have led to bold and bullish behaviors over the last three weeks. While no one can predict the exact peak, here are five reasons you’re better off on the sidelines than in the market.

17. These Charts Suggest a Possible +/-60% Decline in the S&P 500 by 2014

Investing financial markets

J.P. Morgan Asset Management has developed a chart showing the past two cycles in the S&P 500 highlighting peak and trough valuations. At face value it is very alarming as it suggests a potential decline of somewhere in the vicinity of 60% over the next year or two and concurs with previous innovative trend analyses included in this article. Charts: 4

investing3

Based on the latest S&P 500 monthly data, [my analyses indicate that] the  market is overvalued somewhere in the range of 33% to 51%,  depending on which of 4  indicators I used. This is an increase over the previous month’s 31% to 48% range. [Let me explain the details.] Words: 475

19. Goldman Sachs’ Leading Indicators Signal Steep Market Crash Ahead

Capture(74)

Goldman Sachs reports their Global Economic Indicators (GLI) show the world has re-entered a contraction and…is predicting a market crash worse than that of the early 90′s recession and one slightly less than the sell-off at the turn of the millennium. [Below are graphs to support their contentions.] Words: 250

19. Will a Black Swan Event Cause the S&P 500 to Drop by 40%?

Mark Spitznagel…warned the other day that the S&P 500 could lose 40% of its value in the next couple of years. So what black swan event could cause the S&P 500 to drop down to 760? [Let’s take a closer look.] Words: 856

20. Is the U.S. Stock Market Topping & About to Plunge?

stock-market-tsunami

Many signs point to a plunge for the Dow Jones Industrial Average and major indexes rather than a continued climb. If history is ever a good indicator of forthcoming events, it is absolutely imperative that we pay attentions to these signs, and prepare for the worst. Here are a few reasons why the Major U.S stock indexes could see declines in the coming months

 

One comment

  1. Remember that George Soros, recently sold massive amounts of his stock and took that money plus added lots of his own cash and bought Gold, and that was before it took a plunge. To me this means that he has his sights set on PM’s not only going up but Going Way UP over what it is selling for now. I expect to see a massive PM reversal, one that only the very well connected and/or Ultra Wealthy can get in on, since it will send the prices upward really fast! When this happens, everyone will try to gather as much as they can, as fast as they can, as the prices of PM’s “takeoff” with a spike that will make those that trade by charting scratch their heads and get their erasers out…

    Like the shrunken head said, in one of the Harry Potter Movies, “It’s going to be a bumpy ride”.

    Consider these two questions:

    1. if you knew that PM’s were gong to zoom upward while at the same time, the US$ was going to take a big plunge; what percentage of your holding would you want in both, plus how does that mix differ from what you have today?

    2. Where has all the PM’s that were “sold” gone? Who is holding onto it? Because the supply is now very limited. Call a few Dealers and see how much they have on hand to sell and they will tell you that it is at best, is a multi week waiting period before you can take delivery.