Warren Buffett who has been the smiling face backing US stocks seems to be changing his mind. Mr. Buffett have been dumping large amounts of shares in US company’s, most notably Johnson & Johnson, Procter & Gamble, and Kraft Foods.Mr Buffett is saying it has to do with as he put it “disappointing performance”. 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.
Now you may wonder why this is a big deal, It is this 70% of the U.S. economy dependent on you and I buying things, If we don’t buy company’s don’t make money and people like Mr.Buffett don’t invest’.So it seems like that Warren Buffett has lack of faith in these companies and the US stocks and to top it off Mr.Buffett is not the only Billionaire doing this billionaire John Paulson who made his money on the subprime mortgage meltdown, is clearing out of U.S. stocks too.Then we have the darling of the left billionaire George Soros recently sold nearly all of his bank stocks, including shares of JP Morgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares.On a side note, The $8.5 billion Soros Fund Management now owns 600,000 shares of the gold ETF, worth an estimated $97 million. That’s down from 1.3 million shares, worth more than $227 million so what is this saying for future gold prices.
Why are Billionaires selling U.S stocks it may have to do with a prediction of a 90% massive market correction by Robert Wiedemer, an esteemed economist who saw the housing bubble coming years before it happens! So hold on folks the ride looking like it could be a little rough. we all know if crap happens to the big boys it rolls down the hill and hit we the little people very hard.