January 11, 2015
Billionaires Dumping Stocks; Stock Market Crash on the Way
When it comes to investing in the stock market, we’re told to follow the smart money. Who might that be? The most influential investors/businessmen in America today are Warren Buffett, John Paulson , and George Soros . Their investing acumen has helped them amass billions of dollars and millions of followers.
With the stock market trading at record highs one would think they’re still snapping up U.S. stocks. The NASDAQ is up 275% since the markets bottomed in March 2009, and the New York Stock Exchange is up 165%.
The most important stock market indices are keeping pace. The S&P 500 has climbed more than 210% (and closed above 2,000 for the first time ever in August 2014). The Dow Jones Industrial Average has increased 175%.
But should we follow the smart money when they’re shedding American stocks? Some of the most visible and vocal billionaire investors are turning their backs on U.S. stocks. Are they preparing for a stock market crash in 2015? And should we follow suit?
Over the last couple of years, Warren Buffett’s holding company, Berkshire Hathaway, has been dumping its exposure to American stocks that rely on consumer spending.
For example, at the end of the second quarter of 2012, Berkshire Hathaway held 10.33 million shares of Johnson & Johnson.(1 ) At the end of the second quarter of 2014, it held only 327,100 shares.(2 ) Over a two-year period, Buffett’s holding company sold off 96.8% of its holdings in Johnson & Johnson.
Berkshire Hathaway also culled its holdings in Kraft Foods Group, Inc. (NASDAQ/KRFT). In the second quarter of 2012, Warren Buffett’s holding company held 58,826,390 shares; two years later, it held just 192,666 shares. That represents a 99.7% sell-off.
Click on Link:
http://www.profitconfidential.com/economic-analysis/upcoming-stock-market-crash/
