Is the Big Stock Crash About to Happen? Billionaires Quietly Dumping Stocks

Billionaires Dumping Stocks, Economist Knows Why
www.moneynews.com...

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. Read Latest Breaking News from Newsmax.com www.moneynews.com... Urgent: Should Obamacare Be Repealed? Vote Here Now!

High-grade market meltdown fears grow as Treasury yields spike
www.ifre.com...

The 10-year Treasury yield has climbed more than 20bp since last Friday to trade over 2% this week, tipping the return on investment-grade corporate bonds from positive to -0.6% on the Bank of America Merrill Lynch index year to date. That compares with equity returns of around 5.00%. Another 20bp spike, which is very possible if Friday’s employment data is strong, “will definitely impact demand” for new issues, says David Trahan, head of investment-grade syndicate at Citigroup. And from there rates would be dangerously close to levels that could spark one of the worst corporate bond selloffs ever witnessed, warned bankers. “Everyone is talking about this,” said the head of investment-grade syndicate at a major US bank. “At some point this will be the most difficult and ugliest market probably that we have ever seen, because if rates go up quickly and everyone becomes of the opinion that it’s time to get out of fixed income, who is going to be on the other side of that? It becomes a self fulfilling prophecy, especially when the dealer community is not making markets like they used to.”

So with the oversold house of cards about to fall, the big guys are quietly selling off, leaving everyone who has his retirement fund stuck in stocks and bonds unable to do anything about it. Warren has been pushing stocks for the year, telling everyone it's a buy while quietly selling off with the profits he made telling everyone to buy.

Why do we listen to these people. They say buy, we think...hey he's rich, he knows. We buy, he sells, stock dies, we become the surf class.

Get ready people.

This makes me wonder if this is why they are pushing this gun ban agenda so hard, just in time for the big implosion. Can't have all those angry citizens armed.

That story is from august 2012, I made a thread about this in september 2012, but anyway they know something we don`t that`s why they were dumping stocks and they probably still are dumping certain stocks.

www.abovetopsecret.com...

In the UK stocks are rallying and the Market is now alost as high as it was at its peak. Which leads me to believe that something fishy is going on because the UK economy is still shrinking/stagnating so there is no real reason for it to be this high.

If you take inflation into account, stocks are still below there 911 value, but everyone keeps hyping them like they are the place to be. Gold on the other hand went from 350 to 1600 per oz and with the money printing, is about to move again.
Its sounds like the rich think its time to offload the loss onto the poor and stupid again, or should I say take their money and run.
I'm betting they're buying up hard assets while we speak.

reply to post by redtic


Get your monies out of those garbage mutual funds, the hedgers are desperately trying to get people to buy in again.

Something about the avatar you do not like ??

reply to post by winterkill

The 10-year Treasury yield has climbed more than 20bp since last Friday to trade over 2% this week, tipping the return on investment-grade corporate bonds from positive to -0.6% on the Bank of America Merrill Lynch index year to date.

I am not an economist, but maybe you could explain to me just how a 20bp jump converts a positive return into a -0.6% return. 20bps is equal to 0.2% and I don't see how an increase of 0.2% can cause a loss of -0.6%. Does it have some kind of tripling effect or what?

Well.....apparently they weren't quiet enough.



Jus' Sayin'





spez

Originally posted by Xaphan
This makes me wonder if this is why they are pushing this gun ban agenda so hard, just in time for the big implosion. Can't have all those angry citizens armed.

Right...cause this is so impending and they just rounded up like all the guns like what 200-300 million guns?

LOL

I keep hearing about a Gun BAN...show me this BAN cause all I see is legislation on registration and background checks and limits on magazines

Stop stirring the pot. LOL

the first article is, as stated, from August and, while still worth reading, somewhat outdated and, therefore, not quite as ominous.

The second article is talking, not about the stock market but, rather the corporate bond market.

This is today's though

The Stock Market Bubble. Surging Stock Markets Amidst a Global Depression
www.globalresearch.ca...

Europe is in a state of disintegration, with Greece and Spain facing conditions not seen since the Great Depression, while Germany is experiencing a sharp slowdown. In Britain, the economy is now 3.3 percent smaller than at the start of the downturn, but the benchmark FTSE 250 index has doubled. China, Brazil and India have posted sharply lower figures for economic growth, amidst a slowdown in exports. Yet global share prices have risen ten to twenty percent in the past year alone. These apparently contradictory phenomena—surging financial markets and economic stagnation—are in fact intimately linked. The continued rise in the markets is not a sign of health, but a particular expression of the diseased state of the world capitalist system. The world’s ruling classes, confronting a historic crisis of productivity and investment, have responded through the reflation of asset values—and their own incomes—through historically unprecedented measures of wealth redistribution. Above all, there has been a massive infusion of cash into the financial system by the US Federal Reserve and other central banks. The US Fed is currently purchasing some $85 billion worth of mortgage-backed securities and treasury bills every month, essentially printing money to buy up government debt and bad assets held by the banks. The total assets owned by the Federal Reserve have climbed to $3.01 trillion, more than triple what they were in 2008.

Ten words...paper over the problem as long as possible. Then meltdown.

It's the computer age folks they can make the market appear to do what ever they want. They have been printing and creating binary money from nothing for a century. if you think they do not have control of the computer managed market indexes you are naive. They are quietly selling but they will be buying them back at a pittance when the herd catches on and panic sells them. That is their game and they will head off any crash by pressing a few buttons on the computer, actually not even that they already have automated scripts for that. One day the house of cards will collapse completely when enough people finally lose faith in the illusion but it's hard to predict when.

Yep the market is about to dump... But is mainly due to the overbearing federal government... I can't go on a vacation this year... NOR will I put money in the market.... I will in commodities not in the stock exchange with all the new tax laws companies will not be turning major profits... so people are slowing moving their money...

reply to post by winterkill


I'm not saying the stock market is not due for a correction, or crash. I merely pointed out that the timing of his first article was old enough to no longer be as worrisome and his second article had nothing to do with the stock markets.

The article you link to is interesting and there are some very serious issues that it raises but, after perusing the site a bit, it seems they are not entirely unbiased when it comes to their reporting.

I'm all for seeing and looking for any such collapse amid global central bank monetary pumping and indefinite can kicking. That's what prompted me to join ATS. But now it is being reported that manufacturing global activity is beginning to rebound and US employment is showing signs of steady economic recovery, by way of upward revisions on prior UE data.

As for world share markets, what does it matter if there is a correction or a crash? Big deal, though sorry for people who will lose money but they are silly enough to play the stupid game. Besides, the market will come back again. There's always been hills and valleys, ups and downs in the markets.

It's not until something much deeper gives in the financial system that we'll see something far more destructive. Sure everyone panics, including politicians, when share markets tank, but when they are rising, nothing else matters, it's all recovery. Don't matter that there is widespread and deep unemployment throughout parts of Europe, it's all recovery. Don't matter the US unemployment rate climbs back to 7.9 per cent. It's all recovery. Don't matter that people are self-immolating in Greece and Spain, as long as markets have calmed and borrowing costs have receded, it's all recovery.

One should never get their news from an article that tries to sell a book at its conclusion. You have just read an infomercial.

Originally posted by Flatfish
reply to post by winterkill

 

The 10-year Treasury yield has climbed more than 20bp since last Friday to trade over 2% this week, tipping the return on investment-grade corporate bonds from positive to -0.6% on the Bank of America Merrill Lynch index year to date.

I am not an economist, but maybe you could explain to me just how a 20bp jump converts a positive return into a -0.6% return. 20bps is equal to 0.2% and I don't see how an increase of 0.2% can cause a loss of -0.6%. Does it have some kind of tripling effect or what?

edit on 1-2-2013 by Flatfish because: (no reason given)

Because bonds are priced at current interest rates and not the rate they were issued at.

Suppose you put $1,000 into a bond at 3%. Pay $30 a year in interest. Now lets say rates rise to 6%. Anyone who buys your bond from you is going to want a 6% return. So the market value of your bond is only going to be $500 instead of the original $1,000 ($500 x 6% - $30).

If you plan to hold the bond until maturity this only represents opportunity cost lost. However if you need funds and forced to liquidate then you will take a severe loss on the bond. Bottom line is you don't want to hold bonds as interest rates rise.

thank you, very well put. This is why the bond market is poised to collapse.

reply to post by sligtlyskeptical


I still find it hard to believe that 0.2%, (2 tenths of 1 percent) is going to make or break anyone's investment. If your investments hinge on a 0.2% margin, my advice to you would be to look for a better investment in the first place.