“…The Fed continued 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”. The Fed cannot go on printing dollars to the system and expect no ill effects”
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.
Last summer we made a call for subscribers that earned 4,500% in just three days by calling the market crash in late August correctly.
And, our Senior Market Analyst, Ed Bugos, has just reissued a very similar play in an alert to Premium subscribers on September 16th.
There is no guarantee we’ll make another 4,500% gain in a short amount of time, of course. But it is virtually the exact same investment play we made last summer which made a fortune.
And, that was before we had the likes of Soros, Trump, Rothschild, Jim Rogers and numerous other billionaires, also feeling the same way as us.
We are now less than a week away from the end of the Jubilee Year and if our call is right, we could again make mind boggling returns in just the next few weeks or months.
And, the best part about this type of an out-of-the-money shot is that you can put a small amount of money into it and possibly make large returns… and if it is wrong, you lose just a small amount of money.
Subscribe to TDV Premium and get immediate access to Ed Bugos’ pick in his alert of September 16th.
If the ship’s going down, and soon, it’ll be much more enjoyable making a massive investment return off of it than going down with everyone else.
CNBC - Sep 26, 2016
Billionaires Warren Buffett and Bill Gates have similar ideas about how much money you should leave your kids. Kathleen Elkins | @kathleen_elk. 23 Hours Ago. Warren Buffett and Bill Gates prepare to do the 'newspaper toss' at the Berkshire. Brad Quick ...
Omaha World-Herald - Sep 24, 2016
Carret met the Buffett family in the 1940s, and Berkshire became Carret's most successful investment, purchased in the 1960s for less than $400 a share (now about $220,000). He started Carret & Co. in 1963 to provide investment services to wealthy ...
The Motley Fool Canada - Sep 26, 2016
Warren Buffett has long extolled the value of cash. Buffett's biographer stated that he doesn't view cash as an asset without value, but instead as an option that can be used to purchase assets when they become undervalued. While there is an ...
Malay Mail Online - Sep 26, 2016
Watch the video above to see an excerpt with Thomas Friedman and Warren Buffett. — Bloomberg. File picture of Berkshire Hathaway CEO Warren Buffett talking to reporters prior to the Berkshire annual meeting in Omaha, Nebraska May 2, 2015. ― Reuters ...
Omaha World-Herald - 1 hour ago
Have a question for Steve Jordon about the Oracle of Omaha? Submit your questions now (email@example.com), then join Steve at 11:30 a.m. on Tuesday to discuss the latest news about Warren Buffett. Some basics: Q. Will Buffett join the chat? A. No ...
ValueWalk - 21 hours ago
We all write more than ever today, but do we communicate well? As one group, corporate directors, pondered how to communicate effectively to shareholders, they turned to the gold standard. They wondered, what most distinguishes Warren Buffett's annual ...
Lexington Clipper Herald - 6 hours ago
“We're thrilled that Warren Buffett and his team came back to us to bring this amazing event to the world,” Yahoo Finance Editor Andy Serwer said Monday in a press release. Convention organizers have wrestled in recent years with the question of ...
Island Packet - Sep 26, 2016
Berkshire Hathaway investors will again be able to watch online as Warren Buffett answer questions at the annual meeting next year instead of making the pilgrimage to Omaha. Yahoo Finance said Monday that it will again broadcast Berkshire's annual ...
FrontPage Magazine - Sep 25, 2016
Remember ten or twenty Obama PR gimmicks ago when he was trotting out Warren Buffett to make the case for higher taxes because apparently he paid less taxes than his secretary. Or some other nonsense. And briefly one of the richest men in America ...
The Motley Fool Canada - 7 hours ago
Warren Buffett is an amazing investor, and there's no denying that he is at the top of the pyramid when it comes to making good moves. A big reason he has been able to achieve greatness is due to something called “float.” For insurance companies, float ...
Yahoo Finance to Host Exclusive Live Stream of Berkshire Hathaway Shareholders Meeting for Second Year
Business Wire (press release) - Sep 26, 2016
“We're thrilled that Warren Buffett and his team came back to us to bring this amazing event to the world.” To date there have been approximately 17 million views of Yahoo Finance's exclusive live and VOD coverage of the Berkshire Hathaway shareholders ...
GuruFocus.com - 1 hour ago
Next, Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) still sells at a discount to our estimate of its intrinsic value. We believe Buffett and his successors are likely to be able to compound at a reasonable pace, particularly due to the ability to buy ...