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So why are these billionaires dumping their shares of U.S. companies?

Discussion in 'The Courtyard Café' started by god_zeus, Sep 17, 2012.

  1. god_zeus

    god_zeus Alfrescian Old Timer

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    So why are these billionaires dumping their shares of U.S. companies?
    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.



    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: http://www.moneynews.com/Outbrain/b...-stock/2012/08/29/id/450265?PROMO_CODE=FE8A-1
     
  2. syed putra

    syed putra Alfrescian Old Timer

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    All stocks are overvalued anyway.
    Those dumbbell brokers based their Guide not on returns by dividends but based on revenue for the year.
     
  3. Cruxx

    Cruxx Alfrescian Old Timer

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    I think they are trying to liquidate their equity assets to finance nuclear weapons. The Jews are planning to take over the world! It's true. I read it on the internet. :rolleyes:
     
  4. ReadySteadyGO

    ReadySteadyGO Alfrescian (Inf)

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    Sell on good news buy on bad news.
     
  5. LeMans2011

    LeMans2011 Alfrescian Old Timer

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    Because their gangsta govt is going to print a whole lot more money... in the form of QE3
     
  6. LeMans2011

    LeMans2011 Alfrescian Old Timer

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    Many of you would already be familiar with the QE1, QE2 and now the QE3.
    In short, the gangsta nation through is decades of decadence and exuberance has way, way overspent beyond what they could ever repay.
    US is not new to defaulting on its creditors. Trillions of gold from other countries is still held by their treasury ever since they defaulted on the gold-backed US$.
    US$ is going to the dumps. QE3 ie Quantitative Easing ie stimulating economy by printing more money to buy up bonds and treasuries => US$ = banana money.
    That is why the big wigs are dumping their investments.

    I know some would point to me QE3 by its nature would actually boost the equities market. But the point is the worthlessness of the US$ which has a big implication on whatever investments in the US.
     
    Last edited: Sep 17, 2012
  7. Narong Wongwan

    Narong Wongwan Alfrescian (Inf)

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    No worries our whore jinx with the midas touch can go in to bargain hunt and sweep everything up...
     
  8. Bigfuck

    Bigfuck Alfrescian (Inf)

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    Keypoint to note. US dollar is defacto standard of currency for trade. You cannot measure your own self. So for USA loss for paper money is lesser than the suckers that bought them It was calculated as far back as 1944. USA will still be ahead in the end. The whole game was calculated based on progression on numbers and iterations. They are still very much ahead.
     
  9. Dreamer1

    Dreamer1 Alfrescian Old Timer

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    Financial meltdown within one month,these billionaires are the wise ones.
     

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