Buffett is selling stocks. I don’t know why the NYT’s buried that fact in 1,500 words.
Source link: http://blog.mises.org/10622/uh-oh/
Uh oh
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The NYT buried the fact that Warren Buffet is on net selling stocks because the paper does not want any negativity regarding the economy and, by implication, the great Obama’s economic policies in the forefront, especially from one as prominent and successful as Warren Buffet.
Amazing. Also in the article is the fact that Buffet buys butt-loads of stock in failing companies such as GM and AIG and then lobbies the Feds to give them bailouts! Sickeningly, (but not surprisingly) the NYT hails Buffet as a HERO for this sort of taxpayer fleecing. Buffet is just another piece of pond-scum like Soros and the other financial manipulators. It’s a damn shame that they will probably die surrounded by luxury while small-time patsies like Bernie get sent away.
Uh, oh, I think you know very well “why”… We all know.
But… Maybe he just sniffed out better opportunities for his capital?
Am I naive?
I’m betting that Warren is wrong. People are looking for the economy to pick up in order to establish a foundation for stocks. But the economy isn’t the only driver of the stock market. The next big driver is the money pump of the Fed. All that new money has to go somewhere and a lot of it will finds its way into equities. I’m betting my retirement on it.
I beg you to reconsider, fundamentalist. For your retirement’s sake. I fear “retirement” will soon be a scarce commodity for most every American.
True, billions are generated every month and the money has to go somewhere. A lot of it goes into equities, but that doesn’t add value to the equities. It only raises the current market price. Remember that bubbles are an excellent way that wealth is transferred. Of course if you are on the side of owning equities when they crash, it is an efficient way wealth is obliterated.
Regarding Buffett, he is late. He knows it. Since “talk is cheap”, I’m going to ignore his USA/Obama pumping of earlier days and, instead, follow his actions. He is selling (and I liquidated my stock holdings about 12 months ago). What he’s buying will tell you everything you need to know.
Warren has become rich by being more right than wrong, more often than other people, so if I had stocks, I would be worried!
Coincidentally, there’s a conjunction of Saturn and Sol, 17th of September. This is usually bad news, though it’s great for judges and accountants! the Sun will also be opposite Uranus (the public), Let’s see if the stars do influence human events!
“Coincidentally, there’s a conjunction of Saturn and Sol, 17th of September. This is usually bad news, though it’s great for judges and accountants! the Sun will also be opposite Uranus (the public), Let’s see if the stars do influence human events!”
I’ll have to apologize in advance, because I’m going to be testing my “bad economic happenings” foghorn that day as well. So if bad things happen, then they’ll obviously be due to my foghorn. But seriously, what you describe is no different than the Feds taking credit for having kept the downturn from being worse; you need to have more than simply “X happened around when Y did, so it must have been a cause”.
Richard: “A lot of it goes into equities, but that doesn’t add value to the equities. It only raises the current market price.”
The “current market price” is why I’m in stocks. I got out in June 2007 because of what I read in Hayek’s business cycle theory. The market peaked that October at 14,000 for the Dow. I stayed in cash until March of this year and got back in because I was confident in the Austrian monetary theory position that much of the new money would go into equities. (see Machlups article on this site.) Not to brag, but I made 35% on several ETF’s over six months. The stock market climbed because of monetary pumping, not because of a growing economy or because companies added value. I think monetary pumping will keep the stock marketed inflated for another year or two. The ABCT tells you when to get out: when profits hit records and every talking head is a pimp for the market.
PS, a good rule of thumb is that the monetary pump inflates bubbles; the real economy pops them.
Dear Shay,
You don’t know what you are talking about. Where can I find a book that talks about your horn? If, though, you bothered to investigate astrology, in any book you would find that they all say that a conjunction of Saturn and the Sun is bad. Therefore, this is something we can test. Testing is scientific. Knee-jerk scepticism is not.
(Incidentally, I called the height of the Stock Market of 2000 correctly, predicting it would climax on May 17, the end of a favourable conjunction of Venus and Jupiter. Have you done anything similar?)
Keep in mind that Warren Buffet never tries to forecast the direction of the market. If he selling on net, that doesn’t mean he thinks the market is too high. He is probably just repositioning.
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