Billionaires Dumping Stocks, Economist Knows Why

(MoneyNews):  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.

….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 HERE: Billionaires Dumping Stocks, Economist Knows Why

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Isn’t it interesting that Soros and Paulson have dumped most of the Bank stocks and have been buying up Gold Juniors at the same time.  Remember this post just a few weeks ago:

Gold Bug Hedge Funds Collectively Report Over $183mm In New Call Option Positions On Miners

Furthermore with the Commercials having transferred the short gold positions to the Hedge Funds, this looks like it will be an interesting summer.

(image courtesy of Bloomberg)

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1 Comment on "Billionaires Dumping Stocks, Economist Knows Why"

  1. Also, the ‘talking heads’ on CNBC, BNN, FOX, etc. Recently used the fact that George Soros lightened his GLD position, to say that this had proven that the “gold bubble” had burst since people like Soros were “getting out” of gold. What a load of crap! Twist a half truth into a lie.

    What Soros actually did was ‘redeem’ part his GLD shares for gold bullion and I suspect some cash to, which he promptly put into the PM mining sector. This is where the really big profits will be made, during the great revaluation that must take place.

    The very wealthy 1 % and even more so, the top of the cream pie 0.1 % have been slowly repositioning themselves to take full advantage of what is about to happen. A big part of this action plan by the elite’s, is taking physical ownership of gold bullion and storing it beyond the reach of ever greedier governments . While those caught in the ‘headlights’ will be crushed.

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