Global Economic Collapse In Process: Billionaires Continue To Dump Stocks, Traders Are Betting Against The Economy, Hedge Funds Preparing Fo

Global Economic Collapse In Process: Billionaires Continue To Dump Stocks, Traders Are Betting Against The Economy, Hedge Funds Preparing For Market Sell-Off, And Now They Start Betting Against Currencies As World Plunges Into Recession

Saturday, February 16, 2013 11:05

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(Before It's News)

 

Billionaires Dumping Stocks, Economist Knows Why

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.

With 70% of the U.S. economy dependent on consumer spending, Buffett’s apparent lack of faith in these companies’ future prospects is worrisome.

Unfortunately Buffett isn’t alone.

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
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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.

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Google Inc Executive Chairman Eric Schmidt is selling roughly 42 percent of his stake in the Internet search

Google Inc. chairman Eric Schmidt plans to sell up to $2.51 billion of his share in the company, according to a Securities and Exchange Commission filing late Friday.

http://articles.marketwatch.com/2013-02-08/markets/36990257_1_shares-of-google-stock-eric-schmidt-plans

Venezuela devalued its currency, the bolivar, the country’s Finance Minister Jorge Giordani said Friday. President Hugo Chavez ordered the move from Cuba, the minister said

 

http://articles.marketwatch.com/2013-02-08/markets/36989549_1_finance-minister-jorge-giordani-devalues-venezuela

Could these be the signs of the upcoming market collapse people have been talking about? I don’t know, but things could start to get interesting.

 

An ominous contemporary warning

Something happened this week that brings back haunting memories of the 2001 put options of airline stocks, except this “bet” is against the entire U.S. economy. This week, an anonymous trader bought 100,000 put options on the ETF, which is an acronym for an exchange-traded fund. one commonly traded ETF is XLF, which, in the most unscientific and basic terms, is a group of funds that is like a barometer for the stock market.

High-Level Executives Suddenly Dumping JP Morgan Stock En-Masse

 

Over the last week and a half, high level JP Morgan executives have dumped over $6 million in shares in what experts have described as ‘unusual activity’.

Anyone believe JPM’s October 12th earnings report which beat expectations? Looks like accounting BS engineered to dump legacy positions on the general public.A chorus of high-level executives inside JPMorgan (JPM) are selling down their stakes in the company, in what some experts are citing as “unusual” activity within the nation’s largest bank by deposits.CNBC reports that JPM execs have dumped $6 million in the past 10 days! 

Urgent! Hedge Funds Preparing For Market Sell-Off.

 

Some of The Biggest U.S. Hedge-Fund Investors Score Big by Betting Against Yen

Some of the biggest U.S. hedge-fund investors have made billions betting against the yen, exploiting Japan’s determination to weaken its currency and boost its economy.

Wagering against the yen has emerged as the hottest trade on Wall Street over the past three months. George Soros, who made a fortune shorting the British pound in the 1990s, has scored gains of almost $1 billion on the trade since November, according to people with knowledge of the firm’s positions. Others reaping big trading profits by riding the yen down include David Einhorn’s Greenlight Capital, Daniel Loeb’s Third Point LLC and Kyle Bass’s Hayman Capital Management LP, investors say…. 

Jim Rickards: Currency War 3 Has Just Begun

Read more at http://investmentwatchblog.com

http://beforeitsnews.com/economy/2013/02/global-economic-collapse-in-process-billionaires-continue-to-dump-stocks-traders-are-betting-against-the-economy-hedge-funds-preparing-for-market-sell-off-and-now-they-start-betting-against-curren-2490528.html