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In a world rife with duplicity, it is downright dangerous to listen to what motivated,
powerful people say. [As such,] never has the advice: “Watch what they do” been so important. So, what are some of them doing?
So writes Monty Pelerin (www.economicnoise.com) in edited excerpts from his original post* entitled Watch What They Do!.
This post is presented compliments of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), and the FREE Intelligence Report newsletter (see sample here). The post may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. You can also “Follow the munKNEE” daily posts via Twitter or Facebook. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
Pelerin goes on to say in further edited excerpts:
According to King World News in an interview with Richard Russell, some very important people may be preparing for an economic Armageddon:
“What do billionaires Warren Buffett, John Paulson, and George Soros know that you and I don’t know? I don’t have the answer, but I do know what these billionaires are doing. They, all three, are selling consumer-oriented stocks.
Warren Buffett has been a cheerleader for US stocks all along but in the latest filing, Buffett has been drastically cutting back on his exposure to consumer stocks. Berkshire has reduced its overall stake in consumer product stocks by 21%, including Kraft and Procter and Gamble. He has also cleared out his entire position in Intel. He has sold 10,000 shares of GM and 597,000 shares of IBM – and roughly 19 million shares of Johnson and Johnson.
John Paulson dumped 14 million shares of JP Morgan and dumped his entire position in Family Dollar and consumer goods maker Sara Lee.
George Soros sold nearly all his bank stocks including JP Morgan, Citigroup and Goldman Sachs. So I don’t know exactly what the billionaires are thinking, but I do see what they’re doing — they are avoiding consumer stocks and building up cash.
One obvious answer to what the billionaires are thinking has to do with America’s consumers. Consumer buying makes up roughly 70 percent of the nation’s Gross Domestic Product and,
- with interest rates near zero,
- with jobs hard to find,
- with unemployment up, and
- with savings scarce,
the billionaires are thinking that consumption is heading down and that America’s consumers are close to going on strike.”
*http://www.economicnoise.com/2013/04/21/watch-what-they-do/
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Remember that George Soros, recently sold massive amounts of his stock and took that money plus added lots of his own cash and bought Gold, and that was before it took a plunge. To me this means that he has his sights set on PM’s not only going up but Going Way UP over what it is selling for now. I expect to see a massive PM reversal, one that only the very well connected and/or Ultra Wealthy can get in on, since it will send the prices upward really fast! When this happens, everyone will try to gather as much as they can, as fast as they can, as the prices of PM’s “takeoff” with a spike that will make those that trade by charting scratch their heads and get their erasers out…
Like the shrunken head said, in one of the Harry Potter Movies, “It’s going to be a bumpy ride”.
Consider these two questions:
1. if you knew that PM’s were gong to zoom upward while at the same time, the US$ was going to take a big plunge; what percentage of your holding would you want in both, plus how does that mix differ from what you have today?
2. Where has all the PM’s that were “sold” gone? Who is holding onto it? Because the supply is now very limited. Call a few Dealers and see how much they have on hand to sell and they will tell you that it is at best, is a multi week waiting period before you can take delivery.