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Why Are Billionaires Dumping American Stocks? Economist Knows Why

 
G3
G3

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09/16/2012 10:24 PM

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Why Are Billionaires Dumping American Stocks? Economist Knows Why
Why Are Billionaires Dumping American 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.

Read more:

[link to www.moneynews.com]

Last Edited by G3 on 09/16/2012 10:26 PM
Anonymous Coward
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09/16/2012 10:29 PM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
Most likely due to the increase in the capital gains tax that is about to occur. Collect your profits while you can.
Anonymous Coward
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09/16/2012 10:38 PM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
Most likely due to the increase in the capital gains tax that is about to occur. Collect your profits while you can.
 Quoting: Anonymous Coward 23173109


1% of America owns 75% of the wealth, do you think they give a fuck about an increase in Capital Gains? This is a Serfdom.
Anonymous Coward
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09/16/2012 10:39 PM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
1% of America owns 75% of the wealth...
 Quoting: Anonymous Coward 23519385


source?
Anonymous Coward
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09/16/2012 10:43 PM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
Why Are Billionaires Dumping American 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.

Read more:

[link to www.moneynews.com]
 Quoting: G3


Billionaire Ken Griffin’s Citadel Investment Group, however, thought the Kraft Foods Inc stock was a buy as it added shares and closed the quarter with 2.5 million shares in its portfolio.
Anonymous Coward
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09/16/2012 10:46 PM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
1% of America owns 75% of the wealth...
 Quoting: Anonymous Coward 23519385


source?
 Quoting: Anonymous Coward 8740132


[link to www.youtube.com]
Anonymous Coward
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09/16/2012 10:50 PM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
1% of America owns 75% of the wealth...
 Quoting: Anonymous Coward 23519385


source?
 Quoting: Anonymous Coward 8740132


false !

However, after the Great Recession which started in 2007, the share of total wealth owned by the top 1% of the population grew from 34.6% to 37.1%, and that owned by the top 20% of Americans grew from 85% to 87.7%.

[link to en.wikipedia.org]
OVRANALYZE

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09/16/2012 10:50 PM

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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
because printing money to put into a broken system has a final end, and that end is BAD. these people know that
chris999

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09/16/2012 11:03 PM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
The fan...


the shit is hitting it.
I dont mean everything I say to be literal. I just like to throw around ideas, and play devil's advocate.

I do not feel obliged to believe that the same God who has endowed us with sense, reason, and intellect has intended us to forgo their use.

-Galileo Galilei
Anonymous Coward
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09/16/2012 11:19 PM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
2nd Great Depression starts in 2013.
Anonymous Coward
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09/16/2012 11:24 PM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
I want to know where they're putting the money.

I got out of the stock market a long time ago because none of it means anything any more. Used to be owning a share of a company meant that. Now they're more like gambling a a casino because the value of the company and it's product is rarely reflected in the stock price.
Simon23k
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09/16/2012 11:27 PM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
when this happens, this is where it starts riots then depression. Peter schiff mentioned this in a few of his reports on market watch.
Children of the Atom

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09/16/2012 11:42 PM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
Most likely due to the increase in the capital gains tax that is about to occur. Collect your profits while you can.
 Quoting: Anonymous Coward 23173109


1% of America owns 75% of the wealth, do you think they give a fuck about an increase in Capital Gains? This is a Serfdom.
 Quoting: Anonymous Coward 23519385


Ignorance is no defense.

There is a great opportunity right now for small to large cap businesses to explode with tons of financing. But you know what is stalling them? Their lack of credit knowledge.

Sad but true America is a credit system now using all the collateral of the USG as its assets, it is backed by the flesh, blood and sweat of real Americans.

Sounds like slavery right? Wrong, it is how America was able to evolve the currency.

Regardless, there ARE available outlets that will begin to emerge in the not too distant future and you will easily see America recover.

These tools are exactly that, tools, billionaires have their heads in their asses and once the cover is called, with all of their money backing the wrong pony, it'll be a sad, sad day indeed for these small few.
<+MarketSellOff+>
"Official SunTard"

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09/16/2012 11:46 PM

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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
Bump
Soros
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09/16/2012 11:48 PM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
THEY ARE PUTTING MONEY INTO "CHINA" AND HAVE BEEN FOR A LONG TIME NOW. They are moving to China simply put and the USA is going to slip into a 3rd world shit hole. Why do you think they have vulgarized young people with degenerate RAP crap.
Anonymous Coward
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09/16/2012 11:59 PM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
2nd Great Depression starts in 2013.
 Quoting: Anonymous Coward 23864586


A big share of the population works 2 or 3 jobs just to get by. That's the only reason GDP growth has risen slightly. If you only factored in workers' primary job, we've been in a depression for years. This depression will be much different than the great depression so you can't really compare the two. It will be one that doesn't end.

Also, fuck Warren Buffett. The guys an ego maniac that will be one of the first to leave the US when it collapses. His sweetheart deal with Bank of America says it all. He's a pro at leveraging his position, but a systemic parasite that has too much vocal power in the markets. He's one of the reasons the system will fail. If he cashed out right now, he could put his billions in an account and his future 1000 generations could live off the interest. Mind you, this is interest that our money supply could never cover. It's monopoly money. What he does is legal, but it's 100% bullshit and should never be allowed in the first place. Now he's pulling out of American stocks. For that, he should either leave the country now or be one of the first to be hung when the shit hits the fan. The guy's a prick who doesn't even talk to his daughter. A lot of people for some reason admire him. I myself hopes he dies in a fire.
Anonymous Coward
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09/17/2012 12:17 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
THEY ARE PUTTING MONEY INTO "CHINA" AND HAVE BEEN FOR A LONG TIME NOW. They are moving to China simply put and the USA is going to slip into a 3rd world shit hole. Why do you think they have vulgarized young people with degenerate RAP crap.
 Quoting: Soros 22034043


WRONG

sheesh

the idiocy on these boards never fails to amaze me

you people keep repeating the same tired stories that you heard in 2000 and you never update for current conditions

Smart chinese money is moving from China to the US

So is money from Europe

If so much money was exiting the US markets, why are we breaking new highs not seen in ten years?

Again...its the blind leading the blind on these boards...explains why so many on GLP are broke ass, depressed and wrong
Anonymous Coward
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09/17/2012 12:18 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
gaah
Anonymous Coward
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09/17/2012 12:38 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
THEY ARE PUTTING MONEY INTO "CHINA" AND HAVE BEEN FOR A LONG TIME NOW. They are moving to China simply put and the USA is going to slip into a 3rd world shit hole. Why do you think they have vulgarized young people with degenerate RAP crap.
 Quoting: Soros 22034043


WRONG

sheesh

the idiocy on these boards never fails to amaze me

you people keep repeating the same tired stories that you heard in 2000 and you never update for current conditions

Smart chinese money is moving from China to the US

So is money from Europe

If so much money was exiting the US markets, why are we breaking new highs not seen in ten years?

Again...its the blind leading the blind on these boards...explains why so many on GLP are broke ass, depressed and wrong
 Quoting: Anonymous Coward 18598833


You don't really know how the stock market works, do you?
Anonymous Coward
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Romania
09/17/2012 01:17 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
Why Are Billionaires Dumping American 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.

Read more:

[link to www.moneynews.com]
 Quoting: G3


If this is true, then it is alarming indeed. When Billionaires or people in the know are dumping stocks for cash, then we know the time is near.
Anonymous Coward
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09/17/2012 01:26 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
THEY ARE PUTTING MONEY INTO "CHINA" AND HAVE BEEN FOR A LONG TIME NOW. They are moving to China simply put and the USA is going to slip into a 3rd world shit hole. Why do you think they have vulgarized young people with degenerate RAP crap.
 Quoting: Soros 22034043


Yup.
Anonymous Coward
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09/17/2012 02:04 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
Most likely due to the increase in the capital gains tax that is about to occur. Collect your profits while you can.
 Quoting: Anonymous Coward 23173109


1% of America owns 75% of the wealth, do you think they give a fuck about an increase in Capital Gains? This is a Serfdom.
 Quoting: Anonymous Coward 23519385


Ignorance is no defense.

There is a great opportunity right now for small to large cap businesses to explode with tons of financing. But you know what is stalling them? Their lack of credit knowledge.

Sad but true America is a credit system now using all the collateral of the USG as its assets, it is backed by the flesh, blood and sweat of real Americans.

Sounds like slavery right? Wrong, it is how America was able to evolve the currency.

Regardless, there ARE available outlets that will begin to emerge in the not too distant future and you will easily see America recover.

These tools are exactly that, tools, billionaires have their heads in their asses and once the cover is called, with all of their money backing the wrong pony, it'll be a sad, sad day indeed for these small few.
 Quoting: Children of the Atom


It's a good thing you are not a stock broker...because your clients would be... iamwith

ain't nothing gonna happen but more bad news... kiss your 401k goodbye...kiss your stocks goodbye...
Anonymous Coward
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09/17/2012 02:18 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
THEY ARE PUTTING MONEY INTO "CHINA" AND HAVE BEEN FOR A LONG TIME NOW. They are moving to China simply put and the USA is going to slip into a 3rd world shit hole. Why do you think they have vulgarized young people with degenerate RAP crap.
 Quoting: Soros 22034043


WRONG

sheesh

the idiocy on these boards never fails to amaze me

you people keep repeating the same tired stories that you heard in 2000 and you never update for current conditions

Smart chinese money is moving from China to the US

So is money from Europe

If so much money was exiting the US markets, why are we breaking new highs not seen in ten years?

Again...its the blind leading the blind on these boards...explains why so many on GLP are broke ass, depressed and wrong
 Quoting: Anonymous Coward 18598833


Actually, I am hearing this is true--My realtor friend told me that he's got several European investors all buying US real estate right now because they think the Euro is going to fail. It's evidently part of what is supporting US price increases in real estate. I don't see how that's any safer, but it's what's happening.
Anonymous Coward
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09/17/2012 02:24 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
THEY ARE PUTTING MONEY INTO "CHINA" AND HAVE BEEN FOR A LONG TIME NOW. They are moving to China simply put and the USA is going to slip into a 3rd world shit hole. Why do you think they have vulgarized young people with degenerate RAP crap.
 Quoting: Soros 22034043


Yup.
 Quoting: Anonymous Coward 23884908


NWO globalists wanted to deindustrialize the west to a) steal our wealth i.e. wealth transfer and b) eliminate the middle class. They needed China & India to do this. So China did not build itself and is only temporary. After the dollar crash/devalue (whichever) China will slide back to serfdom. The US will be worse off. There will be no middle-class anywhere. This eliminates an economic competition for the global banking elite. Also, without the middle-class the worker never retires, earns less, gets fewer benefits. The wealth is not spreading east, Chinese style serfdom is spreading west.
Anonymous Coward
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09/17/2012 02:50 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
CASH IS KING...THEY ARE STANDING BY FOR THE NEXT CRASH LIQUIDATION...AND BUY AT PENNIES ON THE DOLLAR....SAY 6 TO 9 MONTHS
Dangerwalt

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Brazil
09/17/2012 03:56 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
because printing money to put into a broken system has a final end, and that end is BAD. these people know that
 Quoting: OVRANALYZE


^^ This^^.
Just one any....

The first symptom of stupidity is to think that we already know everything...

:hollowichigo:
bvndy
User ID: 22365385
United States
09/17/2012 04:34 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
THEY ARE PUTTING MONEY INTO "CHINA" AND HAVE BEEN FOR A LONG TIME NOW. They are moving to China simply put and the USA is going to slip into a 3rd world shit hole. Why do you think they have vulgarized young people with degenerate RAP crap.
 Quoting: Soros 22034043


WRONG

sheesh

the idiocy on these boards never fails to amaze me

you people keep repeating the same tired stories that you heard in 2000 and you never update for current conditions

Smart chinese money is moving from China to the US

So is money from Europe

If so much money was exiting the US markets, why are we breaking new highs not seen in ten years?

Again...its the blind leading the blind on these boards...explains why so many on GLP are broke ass, depressed and wrong
 Quoting: Anonymous Coward 18598833


You don't really know how the stock market works, do you?
 Quoting: Anonymous Coward 23889372


He doesnt know how anything works.
Dumbass money is being used to create a fake stock "rally",
while the ones in the know get the hell out of dodge.
Always pay attention to the rich, they usually klnow what is going on.
Warren Buffett is buying farm land.
George Soros is dumping paper for gold and silver.
Peeps in the "know" are dumping paper and getting tangible assets.
And the scariest thing, we are not selling paper to China
anymore, they have wised up, and are having troubles themselves.
Who are we selling our debt to?
OURSELVES, its calling "monetizing the debt", AKA printing
money by the ton.
Which leads to fake good times for about a month.
Then look out.
Be easy to tell when hard times are coming, gas will be around four to five dollars, a hamburger four to five dollars, gold shooting for 1900 to 2,000 silver pushing
35 to 40...
Wait a minute...
Anonymous Coward
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United States
09/17/2012 04:39 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
2nd Great Depression starts in 2013.
 Quoting: Anonymous Coward 23864586


A big share of the population works 2 or 3 jobs just to get by. That's the only reason GDP growth has risen slightly. If you only factored in workers' primary job, we've been in a depression for years. This depression will be much different than the great depression so you can't really compare the two. It will be one that doesn't end.

Also, fuck Warren Buffett. The guys an ego maniac that will be one of the first to leave the US when it collapses. His sweetheart deal with Bank of America says it all. He's a pro at leveraging his position, but a systemic parasite that has too much vocal power in the markets. He's one of the reasons the system will fail. If he cashed out right now, he could put his billions in an account and his future 1000 generations could live off the interest. Mind you, this is interest that our money supply could never cover. It's monopoly money. What he does is legal, but it's 100% bullshit and should never be allowed in the first place. Now he's pulling out of American stocks. For that, he should either leave the country now or be one of the first to be hung when the shit hits the fan. The guy's a prick who doesn't even talk to his daughter. A lot of people for some reason admire him. I myself hopes he dies in a fire.
 Quoting: Anonymous Coward 10957384


that^
Mr information
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09/17/2012 04:53 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
Why Are Billionaires Dumping American 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.

Read more:

[link to www.moneynews.com]
 Quoting: G3


Wow a correction of 90%

This means WW3 if i'm not mistaken...
Anonymous Coward
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09/17/2012 05:27 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
Both stocks, and Foreign exchange are being pushed up to totally inflated highs, I thought it was just stop breaks first but its far more than that. We expect it to go down a bit push up during the US election then look out April 2013 and October 2013. The 2008 stock crash will pale in comparision, then a war ( I pray this not true ) but its rapidly heading that way. The secong wave of the credit crunch has happened yet and the SHTF in a global way.
Anonymous Coward
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09/17/2012 05:32 AM
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Re: Why Are Billionaires Dumping American Stocks? Economist Knows Why
Why Are Billionaires Dumping American 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.

Read more:

[link to www.moneynews.com]
 Quoting: G3


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Real Estate is leveling off ? Ever wonder why ? The rich have gone in places like Vegas and bought up large quantities of real estate ( foreclosures by the bulk ). A friend who works at a bank manager told me one businessman had 50 million and bought a bunch of foreclosed homes at $40,000 each as they were worth in today's market twice that. That is why you it is difficult to find a home to buy in Vegas which was number 1 in foreclosures this past year.

The unemployment rate is stabilized why ? Because many have run out of collecting benefits. they are still unemployed. Do you honestly think the job market is improving ? Do check out these things instead of believing what you hear.