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.

Read more: Billionaires Dumping Stocks, Economist Knows Why

Fellow billionaire John Paulson, who made a fortune betting on the subprime mortgage meltdown, is clearing out of U.S. stocks too. During the second quarter of the year, Paulson’s hedge fund, Paulson & Co., dumped 14 million shares of JPMorgan Chase. The fund also dumped its entire position in discount retailer Family Dollar and consumer-goods maker Sara Lee.Finally, billionaire George Soros recently sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares.

Read more: Billionaires Dumping Stocks, Economist Knows Why

It starts with the reckless strategy of the Federal Reserve to print a massive amount of money out of thin air in an attempt to stimulate the economy.“These funds haven’t made it into the markets and the economy yet. But it is a mathematical certainty that once the dam breaks, and this money passes through the reserves and hits the markets, inflation will surge,” said Wiedemer.“Once you hit 10% inflation, 10-year Treasury bonds lose about half their value. And by 20%, any value is all but gone. Interest rates will increase dramatically at this point, and that will cause real estate values to collapse. And the stock market will collapse as a consequence of these other problems.”

Read more: Billionaires Dumping Stocks, Economist Knows Why

And this is where Wiedemer explains why Buffett, Paulson, and Soros could be dumping U.S. stocks:“Companies will be spending more money on borrowing costs than business expansion costs. That means lower profit margins, lower dividends, and less hiring. Plus, more layoffs.”No investors, let alone billionaires, will want to own stocks with falling profit margins and shrinking dividends. So if that’s why Buffett, Paulson, and Soros are dumping stocks, they have decided to cash out early and leave Main Street investors holding the bag.But Main Street investors don’t have to see their investment and retirement accounts decimated for the second time in five years.

Read more: Billionaires Dumping Stocks, Economist Knows Why

They have decided to cash out early and leave Main Street investors holding the bag.But Main Street investors don’t have to see their  !important]investment and retirement accounts decimated for the second time in five years. Thats why this keeps happening to mainstreet investors.All the information they get says buy,buy,buy.The billionaires see sell,sell,sell right now.
You think this is misinformation?I have three names now that see a major depression coming.I know your brother in law is far better at stocks than anyone else.Of course hes rich now.He just hides it well.triffid