The US is lurching towards an economic catastrophe.
If you’ve been paying attention, over the last few weeks there have been several LARGE “tells.” Those tells were two of the BIGGEST cheerleaders for stocks in history, Warren Buffett and the Fed, getting EXTREMELY bearish.
First and foremost, Warren Buffett, the man who famously stated that he likes to own companies for a long-time, ideally “forever,” has begun dumping huge quantities of stocks.
All told, Buffett sold 21 stocks worth over the last four months. He’s unloaded large portions of his holdings in Goldman Sachs, JP Morgan, and other large banks, as well as multiple airline stocks, pharmaceuticals, and energy stocks.
The media claims Buffett is doing this because he wants to make sure he owns less than 10% of these companies, but when do you remember Buffett ever unloading so many stocks worth billions of dollars in such a short period?
On top of this Buffett didn’t use the March meltdown to load up on investments.
Put another way, during the largest market collapse in years, at a time when many businesses were on sale, Buffett didn’t buy anything (he sold the airlines stocks he tried to buy) but rather chose to start unloading several of his largest positions?
Whatever Buffett is seeing in the economy that is making him do this… it’s NOT good.
Then there’s the Fed.
For decades now, the Fed has been a cheerleader for the economy and stocks.
Indeed, it is extremely rare to find the Fed ever issue a gloomy view of the economy or markets. Which is why it’s astonishing to see the Fed making statements that you would expect from a raging bear.
During the last week, Fed Chair Jerome Powell has publicly stated:
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