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What do they know?

When you hear the progressives talking about things getting better, keep this in mind:

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.

Our economy is getting destroyed by the wealth redistributionists and their policies and plans, and what this means is that consumers will have less money, and thus, less money to spend. And the people that can are acting on that knowledge. The sad thing is that Buffet has been shilling for these very crooks that are fucking us over, and he doing what he can to insulate himself from the pain they are causing the rest of us.

3 comments

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  1. richtaylor365 says:

    I think you are reading too much into this. With the heady gains of last year ( 29% on the S&P 500) all mutual fund managers review and rebalance assets at the end of the year. Individual investors should do likewise. Granted, Berkshire has been sitting on a large of amount of cash, but that is only because stock prices are pretty frothy, no obvious bargains to buy. But the economy is doing much better as well as the dollar;

    http://au.finance.yahoo.com/news/investors-pile-dollar-hope-springs-001900940.html

    Driving the greenback’s renewed strength is anticipation that U.S. economic growth this year will outpace the recovery in Europe and other regions, which would boost the dollar’s value by attracting more cash to U.S. shores. As the economy heals, the Federal Reserve is expected to continue reducing, or “tapering,” its postcrisis stimulus program, a move that also helps the dollar because it slows the injection of new money into the financial system.

    Interest rates are low so companies can borrow money (for research and development, building new factories and hiring more employees) and projections that I have read point to about a 10% TO 12% rise in the stock market this year.

    From your link;

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

    Ridiculous, more “the sky is falling” forecasts from gold bugs, professional investors that bet on the price of gold rising, and this is accomplished by scaring the bejesus out of folks so that they sell all their equities.

    Bears only have to be right once for them to say ,”I told you so”. A correction is coming, it always does, but our economy, despite the monkeying around by President pants on fire, is in pretty good shape, all things considered.

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  2. Hal_10000 says:

    Have to agree with Rich. We know there is now a stock market bubble. No one wants to call it that, but that’s what it is. Buffet is simply ahead of the curve here.

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  3. AlexInCT says:

    Whatever it is, it is symptomatic of these people and their policies: it’s all bad.

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