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Billionaires Dumping Stocks, Economist Knows Why
moneynews.com ^ | Thursday, 02 Jan 2014 | Newsmax Wires

Posted on 01/03/2014 9:18:37 AM PST by gorush

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.

Read Latest Breaking News from Newsmax.com http://www.newsmax.com/Outbrain/billionaires-dump-economist-stocks/2012/08/29/id/450265#ixzz2pMBmh1GN Urgent: Should Obamacare Be Repealed? Vote Here Now!

(Excerpt) Read more at moneynews.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bhodjia; bhoeconomy; billionaires; djia; economy
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Here it comes?
1 posted on 01/03/2014 9:18:37 AM PST by gorush
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To: gorush

I’m really thinking of taking my IRA to a cash position within a week or two...


2 posted on 01/03/2014 9:19:16 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: MrB

In what currency?


3 posted on 01/03/2014 9:22:49 AM PST by Daveinyork (IER)
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To: gorush

I am thinking of cashing in my country for two Blonds.


4 posted on 01/03/2014 9:24:47 AM PST by mountainlion (Live well for those that did not make it back.)
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To: MrB

Feel free to join me there, already doing what you propose. My feeling, and I guess that of Mr. Moneybag liberal, is with all the additional money coming out of the economy to fund health care taxes, fees and the like plus higher premiums, there will be little left for descretionary spending by the average person. Furthermore, when interest rates start to go higher, which has begun, due to competion for cash to fund the government incessant need to sell bonds plus reduced Fed purshasing, the cash is coming out of an earnings challeged stock market. These are the things they don’t tell you on CNBC as one tout after another comes forth to peddle their wares.


5 posted on 01/03/2014 9:25:22 AM PST by Mouton (The insurrection laws perpetuate what we have for a government now.)
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To: Daveinyork; MrB
In what currency?

Bitcoin???

6 posted on 01/03/2014 9:25:45 AM PST by mountn man (The Pleasure You Get From Life Is Equal To The Attitude You Put Into It)
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To: Daveinyork

I don’t think Vanguard will do a bitcoin exchange... :)

Yeah, it’d be nice to go to metal, but I don’t think I can do that handily.

Though... I think Swiss America has an IRA gold option, and a friend of mine has some of his retirement in such an account.

The account manager at SA told him that any hint of government confiscation would result in the instant shipment of the metals to the account beneficiary before they could get their hands on it.


7 posted on 01/03/2014 9:25:52 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: MrB

We’ve been doing the same, penalty be damned. Convert it into something useful while it is still worth something...like water purifiers or sodium iodide. :{)


8 posted on 01/03/2014 9:26:08 AM PST by gorush (History repeats itself because human nature is static)
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To: mountainlion

Golden Retrievers? Those are sweet dogs.


9 posted on 01/03/2014 9:26:29 AM PST by SkyDancer ("How Can People Ask Forgiveness If They Won't Forgive Others?")
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To: gorush
Don't panic and sell your stocks, Mr. Buffett!

Just go to your buddy Obama and arrange for more favors. You know, like Obama deciding not to build the Keystone pipeline. That decision really helped your railroad stocks. Schmoozing Obama worked once. It'll work again.

10 posted on 01/03/2014 9:27:14 AM PST by Leaning Right (Why am I holding this lantern? I am looking for the next Reagan.)
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To: gorush

... and so it begins...


11 posted on 01/03/2014 9:28:40 AM PST by Tallguy (between taglines...)
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To: gorush
Fleetwood Mac...

Don't stop thinkin' about tomorrow, don't stop printing the trillions here...

We are sooo screwed.

5.56mm

12 posted on 01/03/2014 9:30:49 AM PST by M Kehoe
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To: Leaning Right

Mr. Buffett senses that Buddy-Obama’s ability to grant favors is rapidly coming to an end.


13 posted on 01/03/2014 9:31:08 AM PST by Tallguy (between taglines...)
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To: gorush
Buffett’s apparent lack of faith in these companies’ future prospects is worrisome.

No it isn't. Buffett is an insider trader only slightly less repulsive than George Soros in that he isn't quite as openly anti-American and anti-Capitalist.

If he's broadcasting dumping stocks, I'd take it with a grain of salt.

Yeah, the economy is in for a lot more hurt due to the effects of ObaMaoCare, among other things, but there are counter-cyclical stocks and ETF's to mitigate your risk. Don't forget that insiders like Soros and Buffett made BILLIONS from the last crash which they helped engineer.

14 posted on 01/03/2014 9:32:42 AM PST by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: SkyDancer
Golden Retrievers? Those are sweet dogs.

Not just sweeter, but often smarter than the human equivalent.

15 posted on 01/03/2014 9:33:45 AM PST by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: gorush

Unless you seriously need to, don’t do a distribution.
You can go to one of these reputable IRA gold accounts as the “extreme”,
or you can just go to your money market option if you have one.


16 posted on 01/03/2014 9:35:04 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: MrB

I just moved to 30% cash. Will move the remainder on up days this coming week and possibly even sooner. Even my limited technical show a correction coming just after mid Jan.


17 posted on 01/03/2014 9:35:13 AM PST by taxcontrol
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To: M Kehoe
We are sooo screwed.

Been tryin' to tell ya.

18 posted on 01/03/2014 9:36:32 AM PST by Lazamataz (Early 2009 to 7/21/2013 - RIP my little girl Cathy. You were the best cat ever. You will be missed.)
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To: taxcontrol

I’m thinking of taking everything to cash except the “house money” over the last 5 years.
That is, I’ll leave in only the gains achieved, and keep the principal in cash.

I still say the big crash is over a year off, Sept, 2015.


19 posted on 01/03/2014 9:36:56 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: gorush

Whatta laff.

The big money is moving because they know the game is up again.

It’s nothing more then a con game called “the masses lose their asses”.

Pump and run. That’s all they did. There are no “fundamentals” that supported any run up, other then massive money printing and debt creation.

The rubes were lured back in, they bought high, and now they’re gonna get stuck holding the bag again.

While Warren the Slime leaves town with his bucket of cash.

Singing, “Seeya, Suckers”


20 posted on 01/03/2014 9:39:01 AM PST by Regulator
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To: gorush

I think this is an ad to sell books.


21 posted on 01/03/2014 9:39:30 AM PST by Marie (When are they going to take back Obama's peace prize?)
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To: Mouton

Furthermore, when interest rates start to go higher, which has begun...

*********
You’re right. The yield on the 10 Year T has risen steadily since early November. Just something to keep an eye on.

http://finance.yahoo.com/q/ta?s=%5ETNX&t=3m&l=on&z=l&q=l&p=&a=&c=


22 posted on 01/03/2014 9:41:43 AM PST by Starboard
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To: gorush

The article on Newsmax has already run several times in the last few months. I remember reading it in the fall some time. It has the same information about big investors and also the same economist. I, too, believe the stock market is overvalued. But, this article is lacking in credibility. It should state how much each of the billionaires cited sold and when, for one thing. It needs other economists with differing views. As it is, it’s just a puff piece for Robert Wiedemer’s book Aftershock.


23 posted on 01/03/2014 9:42:37 AM PST by WashingtonSource
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To: gorush

There is backroom talk of a savings tax. Not to mention Hitlery stated in it’s last presidential bid that it wanted to nationalize the 401Ks and IRAs and place them in the governmental till. And we wonder why they’re clamping down on ammunition.


24 posted on 01/03/2014 9:42:50 AM PST by fella ("As it was before Noah so shall it be again,")
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To: Lazamataz
Been tryin' to tell ya.

Yes, yes you have.

5.56mm

25 posted on 01/03/2014 9:43:06 AM PST by M Kehoe
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To: Vigilanteman

I have a Border Collie. She’s so smart she’s scary. I can command her in complete sentences and she does it.


26 posted on 01/03/2014 9:43:47 AM PST by SkyDancer ("How Can People Ask Forgiveness If They Won't Forgive Others?")
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To: Regulator

There are no “fundamentals” that supported any run up, other then massive money printing and debt creation.

********
Totally agree. Good post.

FYI, re your comments there are some relevant and interesting insights in this book:

http://www.goodreads.com/book/show/13634703-the-indomitable-investor


27 posted on 01/03/2014 9:45:09 AM PST by Starboard
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To: WashingtonSource
People could be talking this up in hopes of getting us to sell stuff for relatively cheap so they can go out and snap up some bargains.
28 posted on 01/03/2014 9:49:39 AM PST by Cementjungle
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To: SkyDancer
FWIW, my father was a veterinarian. He always said Border Collies were the smartest breed, bar none. They aren't as popular as Goldens for service animals only because they lack the patience to sit still for long.

Regular collies will sometimes make the cut, but Labs, Goldens and German Shepherds seem to be the most popular. A little trade secret is that only around 10% of dogs trained as service animals actually graduate. My kid brother has a lovable Golden who failed service animal school for the same reason: couldn't sit still long enough.

29 posted on 01/03/2014 10:01:42 AM PST by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: gorush

30 posted on 01/03/2014 10:03:22 AM PST by Beowulf9
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To: Cementjungle
People could be talking this up in hopes of getting us to sell stuff for relatively cheap so they can go out and snap up some bargains.

That's what they did with gold last April. In January, Goldman Sachs said gold would be going down. Gold went down a third at least in April. When the stock market exuberance runs out, the big investors will already have moved a significant portion of their money into bargain-priced gold. By the time most people see the correction happening, it will be long past too late.

31 posted on 01/03/2014 10:07:17 AM PST by webheart (Watch out for the bots! They will disagree with you!)
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To: Starboard

Thanks. Looks like a good read.

Honestly, it’s a huge game dominated by monstrous amounts of money. About all you can do is go along for the ride, and if you steer your boat into the wave....you get drowned.

Anyone who thinks different is not understanding the scale of the thing.


32 posted on 01/03/2014 10:09:54 AM PST by Regulator
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To: SkyDancer
Golden Retrievers? Those are sweet dogs.

LOL!

33 posted on 01/03/2014 10:10:41 AM PST by Flick Lives (Got a problem with the government? Have a complaint. Get a free IRS audit!)
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To: Cementjungle

Reminiscing the tech bubble, housing bubble… smart money was made on the way up & on the way down of each bubble. Then the other smart ppl made money when there was blood on the streets.

BTW, news outlets like to point out their view of bad news, if warren is selling…who is buying & what is warren replacing his sell..or is he sitting at cash to pounce on…. what?


34 posted on 01/03/2014 10:11:55 AM PST by SIRTRIS
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To: gorush
Chapter 1: Billionaires dump their stocks before anyone else does and make huge profits. More "little people" sell than buy, so the price goes down. There's a media-inspired panic, and prices go way down. Us little folk miss out.

Chapter 2: Prices are really, really low. The media and the financial gurus tell us the world is coming to an end. Lots more people cash out and the price gets scary low.

Chapter 3:Those billionaires who cashed out in Chapter 1 save the day. They buy up more stock than they ever had before and amass an even greater hold on global wealth.

I've read this book before.

35 posted on 01/03/2014 10:19:02 AM PST by grania
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To: gorush

Beans, bullets and bandaides.


36 posted on 01/03/2014 10:24:14 AM PST by Kartographer ("We mutually pledge to each other our lives, our fortunes and our sacred honor.")
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To: MrB
Sign Of The Top? Hedge Fund Hiring Junior Bitcoin Execution Trader
37 posted on 01/03/2014 10:26:33 AM PST by BreezyDog
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To: gorush

Buffett selling Kraft Foods?

An outfit that makes buck-a-box macaroni dinners is a BUY in this economy IMO.


38 posted on 01/03/2014 10:30:58 AM PST by Buckeye McFrog
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To: MrB

That why I have starting buying Israeli military contractor stock(like TAT Industries.). Their business has a bright future.


39 posted on 01/03/2014 10:33:11 AM PST by Augustinian monk ("BUSHES WITHOUT BORDERS")
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To: Buckeye McFrog
Hi.

An outfit that makes buck-a-box macaroni dinners is a BUY in this economy IMO.

If a liberal/democrat/progressive/marxist (sorry for the redundancy) were reading this, they wouldn't understand, or make the connection.

5.56mm

40 posted on 01/03/2014 10:34:14 AM PST by M Kehoe
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To: grania

Yeah, oldest play in the book. See the Rothchilds.


41 posted on 01/03/2014 10:34:41 AM PST by Augustinian monk ("BUSHES WITHOUT BORDERS")
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To: gorush

The world is about to see the collapse of the house of cards built in the US Stock Market as a direct function and result of quantitative easing (it in) by FedGov.


42 posted on 01/03/2014 10:40:41 AM PST by PubliusMM (RKBA; a matter of fact, not opinion. 01-20-2016; I pray we make it that long.)
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To: gorush
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.

Buffett said the same about McDonald's. After he sold the stock, it took off. Buffett's made his money by gaming the system, not by picking stocks.

43 posted on 01/03/2014 10:41:47 AM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: Buckeye McFrog

It is still far cheaper to make mac’n’cheese from scratch, it tastes better and you can feed 2x or more the number of people better for the same money. The college set and those who only have a single burner and a microwave have downsized to ramen. Personally, I swear by Bismati rice for my lowest cost carb. Fifty cents worth, raw, yields 4+ cups cooked and we find it’s larger grain size more satisfying in most dishes.

Selling J&J is probably smart. All the women I know, most of whom are solidly middle class or better, have switched to making their own cleaning products using the cheapest off brand vinegar, combined with various things like peroxide, alcohol, and reconstituted lime juice. Ammonia is still only $1.25/1/2 gallon. Add some baking soda for scouring and invest in a Norwex cleaning cloth set that only requires water to shine surfaces, and you have saved perhaps $30/month or more in various cleaning products. Many swear by homemade laundry detergent, too.

Off brand paper products, reuse of ziplock bags, foil and paper towels, all lower the monthly outgo.

This same consumer group is cautiously beginning to substitute various herbal teas and other *natural* products for OTC medications. Not sure of the savings, here, but it is still a switch away from those usual consumer goods.

Those who used to shop til they drop, now do so at consignment stores instead of department stores.

A chat among the girls, these days, is all about saving money and staying warm for less.


44 posted on 01/03/2014 10:47:29 AM PST by reformedliberal
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To: MrB
I’m really thinking of taking my IRA to a cash position within a week or two...

We did that - with everything - several years ago....sure, we don't earn squat, but we don't lose (other than inflational erosion) either.....and we sleep a whole lot better as a bonus.

45 posted on 01/03/2014 10:50:36 AM PST by ErnBatavia (The 0baMao Experiment: Abject Failure)
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To: Augustinian monk
If this is true, I got bit of cash. Some of my favs are trading much to high.
46 posted on 01/03/2014 10:57:41 AM PST by Little Bill
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To: gorush

1...2...3...PANIC! Quick pull out all your money!

HAHAHAHAHA!


47 posted on 01/03/2014 11:13:30 AM PST by TheRhinelander
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To: gorush

Got PMs?
Gold, silver, lead, copper, steel.


48 posted on 01/03/2014 11:38:49 AM PST by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: gorush

What was the publication date for this?
I watched the video and noticed references to Gold “soaring”.
Depends on the spelling and definition of soaring - buyers are probably sore.

But the general warning seems valid. Fidelity just sent me some crappola recommending exactly the sectors the article says that Buffet, et al. are dumping...


49 posted on 01/03/2014 11:39:49 AM PST by Chewbarkah
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To: Buckeye McFrog

50 posted on 01/03/2014 12:06:30 PM PST by 867V309 (Obama- he's just crazy enough to do it.)
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