Billionaires Dumping Stocks, Economist Knows Why

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

It’s very likely that these professional investors are aware of specific research that points toward a massive market correction, as much as 90%.

Editor’s Note: Wiedemer Gives Proof for His Dire Predictions in This Shocking Interview.
VIDEO: http://w3.newsmax.com/a/aftershockb/video47b.cfm?promo_code=110D8-1

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.” 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.

Here are some notes from the Wiedemer NewsMax Video: http://w3.newsmax.com/a/aftershockb/video47b.cfm?promo_code=110D8-1

Staying financially safe info in Free Book: Aftershock
Will be $28 on Amazon.com but with last Chapter missing due to Amazon's request.
http://www.amazon.com/Aftershock-Protect-Yourself-Financial-Meltdown/dp/0470918144/ref=sr_1_1?s=books&ie=UTF8&qid=1360776613&sr=1-1&keywords=aftershock

TIPS:

Stay away from real estate as investement as it will continue to go down in value

Sell if you can and rent if you can

Pay off credit cards

Once inflation hits 10% all insurance companies will not do well. Look into term life insurance instead.

Safest careers health care, education, utilities, government services, basic food and basic clothing (retirement age moving up to 73 to get what they did back in the 90s)

Look into estate planning (buy gold to give to relatives prior to death)

Gold bull run will last at least 10 years. Buy from gold depository or gold ETFs - gold mining stocks ? Current Gold Price 2/13/13: $1,641.40 - $1,655.50
http://www.kitco.com/market/

Other precious metals (silver) or T Bills are good investments (stay away from long term bonds).

Good currency investments: Canadian currency, Swiss Francs, Norwegian kKroners http://fx-rate.net/NOK/ rates as of (2/13/13)

American Dollar = (one Canadian 1) = 1.002 Canadian dollars

American Dollar = (one franc 1.09) = 0.9176 Swiss Francs

American Dollar = (one krone 0.182) = 5.492 Kroners