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PREPARE For 90% Correction?!

 
abeliever
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01/21/2013 01:25 PM

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PREPARE For 90% Correction?!
Is this really true!?




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%.



Read Latest Breaking News from Newsmax.com [link to www.moneynews.com]
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Last Edited by abeliever on 01/21/2013 01:26 PM
abeliever  (OP)
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01/21/2013 01:29 PM

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Re: PREPARE For 90% Correction?!
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.”


Read Latest Breaking News from Newsmax.com [link to www.moneynews.com]
Urgent: Should Obamacare Be Repealed? Vote Here Now!
abeliever  (OP)
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01/21/2013 01:31 PM

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Re: PREPARE For 90% Correction?!
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.”



Read Latest Breaking News from Newsmax.com [link to www.moneynews.com]
Urgent: Should Obamacare Be Repealed? Vote Here Now!
Anonymous Coward
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01/21/2013 01:31 PM
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Re: PREPARE For 90% Correction?!
this moneynews bullshit has been circulating the internet for at least a year.
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01/21/2013 01:31 PM
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Re: PREPARE For 90% Correction?!
bsflag
abeliever  (OP)
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Re: PREPARE For 90% Correction?!
this moneynews bullshit has been circulating the internet for at least a year.
 Quoting: Anonymous Coward 31557420


So you think there's no validity in it?
abeliever  (OP)
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Re: PREPARE For 90% Correction?!
bsflag
 Quoting: Anonymous Coward 1259549


OK but tell me why..
G3

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01/21/2013 01:33 PM

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Re: PREPARE For 90% Correction?!
"Be fearful when others are greedy and greedy when others are fearful." -- Warren Buffett


[link to warren-buffett-portfolio.com]
Anonymous Coward
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01/21/2013 01:33 PM
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Re: PREPARE For 90% Correction?!
I like 100% sorry and i dont need pigs just money.
abeliever  (OP)
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01/21/2013 01:34 PM

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Re: PREPARE For 90% Correction?!
"Be fearful when others are greedy and greedy when others are fearful." -- Warren Buffett


[link to warren-buffett-portfolio.com]
 Quoting: G3


Good advice!
Anonymous Coward
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01/21/2013 01:37 PM
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Re: PREPARE For 90% Correction?!
I don't know but I don't blame him for trashing P&G there's no new product innovation somebody needs to come in and revive that fast.
Anonymous Coward
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01/21/2013 01:42 PM
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Re: PREPARE For 90% Correction?!
90% is such a HUGE correction.

Although I do believe the market will crash and burn.

I do believe the next bubble to pop is the currency bubble.

You thought Gold and Silver were in a bubble?
...Just wait.
Anonymous Coward
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01/21/2013 01:51 PM
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Re: PREPARE For 90% Correction?!
Bailout bubble finally about to burst?
abeliever  (OP)
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01/21/2013 01:52 PM

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Re: PREPARE For 90% Correction?!
Even 45% correction would be horrific!
Anonymous Coward
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01/21/2013 01:58 PM
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Re: PREPARE For 90% Correction?!
Even 45% correction would be horrific!
 Quoting: abeliever


Correct.
Anonymous Coward
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01/21/2013 01:59 PM
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Re: PREPARE For 90% Correction?!
bsflag
 Quoting: Anonymous Coward 1259549


OK but tell me why..
 Quoting: abeliever


They were probably betting on a fiscal cliff meltdown, which never happened. Keep in mind the DOW was at 1400 in 2008 before the big crash. I just don't see a crash like that or worse happening again that soon.
Anonymous Coward
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01/21/2013 02:02 PM
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Re: PREPARE For 90% Correction?!
One thing I have learned where the stock market is concerned, if the professionals are telling you to do one thing, you should do the opposite.
Anonymous Coward
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01/21/2013 02:03 PM
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Re: PREPARE For 90% Correction?!
One thing I have learned where the stock market is concerned, if the professionals are telling you to do one thing, you should do the opposite.
 Quoting: Anonymous Coward 1259549


clappa

People told me NOT to buy gold and silver 8 years ago.

I laugh at their faces now.
Anonymous Coward
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01/21/2013 02:06 PM
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Re: PREPARE For 90% Correction?!
One thing I have learned where the stock market is concerned, if the professionals are telling you to do one thing, you should do the opposite.
 Quoting: Anonymous Coward 1259549


clappa

People told me NOT to buy gold and silver 8 years ago.

I laugh at their faces now.
 Quoting: Anonymous Coward 1266452


clappa
abeliever  (OP)
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01/21/2013 10:06 PM

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Re: PREPARE For 90% Correction?!
This!
Anonymous Coward
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01/21/2013 10:08 PM
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Re: PREPARE For 90% Correction?!
I like 100% sorry and i dont need pigs just money.
 Quoting: Anonymous Coward 32736837


Olaf get your ass back to your thread.

goaway
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01/21/2013 10:42 PM
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Re: PREPARE For 90% Correction?!
If you understand how to measure the stock market's value correctly, it's already fallen 81% since 2000:

[link to pricedingold.com]

Nominal numbers mean nothing, since the market is priced in USD and USD is collapsing.
Anonymous Coward
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01/21/2013 10:48 PM
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Re: PREPARE For 90% Correction?!
minus 2 % from millions of paychecks = spending cuts , derp. even the spongebobs are paying that 2 % SS extortion increase
Anonymous Coward
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01/21/2013 10:59 PM
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Re: PREPARE For 90% Correction?!
I've studied both fundamentals and TA for over 2 decades and what they're saying is ridiculous.

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

This assertion is pure BS and if you believe it you are a chump. According to my research, it's very likely that the author of this article is a fear mongering pump n dump con artist.

The FED will do anything and everything to prop up the market. They understand how important it is to consumer psychology. The PPT can mobilize enough digital funny money to prevent this forever. The problem is, even if the market stays basically flat like it has over the last 10 years (on the whole), you are losing big buck$ to inflation. Got gold?

I've turned 20k that I started with in 1999 into 230k and a Porsche. I know of what I speak.
Anonymous Coward
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01/21/2013 11:00 PM
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Re: PREPARE For 90% Correction?!
most of the money printed by the feds end up in southeast asia where bankers are using to invest there very heavily... powerful people in cambodia for example are purchasing cars which cost in 50 to 100 000 dollars with cash same goes toward housing ( average price from 70 000 to 500 000 $ ) ...farmers who never knew what dollars looklike a decade ago are now having thousands to buy things ( inflation as the final result)...it will be a while before these monies will make their ways back to the states.
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01/21/2013 11:00 PM
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Re: PREPARE For 90% Correction?!
bsflag
 Quoting: Anonymous Coward 1259549


OK but tell me why..
 Quoting: abeliever


because it is nothing but a big advertisement to try and get you to buy their shit. I call it cloaked spam.

Here let me add to the bs.

bsflagbsflagbsflag
bsflagbsflagbsflag
bsflagbsflagbsflag
bsflagbsflagbsflag
clapon

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01/21/2013 11:03 PM
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Re: PREPARE For 90% Correction?!
YES NAD LOOK WHAT THEY DID WITH THEIR MONEY...
funny thing happened the other day...

disclaimer. all statements are to be construed as questions.end

oh yeah ... your fired...end
Anonymous Coward
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01/21/2013 11:07 PM
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Re: PREPARE For 90% Correction?!
One thing I have learned where the stock market is concerned, if the professionals are telling you to do one thing, you should do the opposite.
 Quoting: Anonymous Coward 1259549


clappa

People told me NOT to buy gold and silver 8 years ago.

I laugh at their faces now.
 Quoting: Anonymous Coward 1266452


Dumping stock in Intel is not amazing since it has not been a growth stock for quite sometime, plus a drop off in PC purchases compared to tablets and phones. That's probably just a smart move for now and he can get back in when things turn around for Intel.
Anonymous Coward
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01/21/2013 11:07 PM
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Re: PREPARE For 90% Correction?!
Maybe he sees better growth potential in other investments? There are parts of the world that are really starting to boom.
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01/21/2013 11:08 PM
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Re: PREPARE For 90% Correction?!
Not an honest buck to the lot of them.
Anonymous Coward
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01/21/2013 11:09 PM
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Re: PREPARE For 90% Correction?!
If you understand how to measure the stock market's value correctly, it's already fallen 81% since 2000:

[link to pricedingold.com]

Nominal numbers mean nothing, since the market is priced in USD and USD is collapsing.
 Quoting: Anonymous Coward 32623728


clappa





GLP