As the S&P 500 is near record highs, Warren Buffet is more out of the market than he has ever been and waiting for a collapse.
That the 86 year old has so much dry powder, shows his anticipation of a massive market crisis and quite possibly the biggest buying opportunity of his life…
Submitted by Jeff Berwick, The Dollar Vigilante:
Right now the market is perceived to be so dangerous that it’s even chased the most fearless value investors to the sidelines.
Just this evening, in the Presidential debate, Trump warned that the stock market was a bubble “about to pop”.
Now, the bearish billionaire circle has grown even wider with the addition of Warren Buffett.
The “Oracle of Omaha” as he’s known, currently has more money outside the markets than ever before in his five decades running Berkshire-Hathaway.
This is a striking fact considering that Buffett is very well known for his long-term investment strategy – an approach that requires one to constantly have most of their capital tied up in order to generate consistent returns.
That’s right, as the S&P 500 is near record highs, Warren Buffet is more out of the market than he has ever been and waiting for a collapse.
That the 86 year old has so much dry powder, shows his anticipation of a massive market crisis and quite possibly the biggest buying opportunity of his life. Just like us, Buffet is ready to survive and prosper through this calamity.
And with asset prices at all time highs and CNBC and Fox business puppets still perpetuating the great recovery myth, you might expect all these smart money billionaires to be piling into stocks to ride the upside. Instead they obviously know the “goldilocks” recovery holds true to its name’s fairytale origin.
They say “follow the smart money”… and Buffett is known as one of the smartest!
And even more multi-billion dollar fund managers are coming out and warning.
Tad Rivelle, the chief investment officer of TCW’s $195 billion investment fund, is yet another outspoken multi-billion dollar fund manager who’s expressed concern about the economy and monetary policy gone awry.
Rivelle mentioned in a Bloomberg interview last week that he thinks it’s “Time to leave the dance floor” because, to paraphrase, corporate debt is piling up faster than income is increasing.
In a note to investors Rivelle argued, “Face it: the central banking Emperors have no clothes.” he continued:
“…The Fed could continue to use its printing press to falsify capital market signals, but to what end? When a central bank buys an asset with an electronically printed dollar, a “something for nothing” trade has taken place. Unless everything we understand about economics is plain wrong, the Fed cannot go on blithely adding printing press dollars to the system and expect no ill effects.”
The letter continues:
“Our counsel remains as it has been: avoid those assets that will be broken in the coming de-leveraging while keeping a ‘steady as she goes’ attitude towards the future purchase of those assets that will merely bend when the flood comes.”
He actually called the coming de-leveraging, “the flood”. Even the language of these top money people is biblical in nature.
When we first began ringing the alarm bells about an impending financial crisis last summer, we were nearly the only ones doing it. Then, month after month, some of the biggest names in money and finance have not only climbed aboard our bandwagon, but have practically stampeded past us.
Now, we can barely keep up with the amount of people warning of impending doom.