The not so Secret Sell Off…. Do the Super Rich Know that the Economy is about to Tank?
Despite government assurances that the economy is on the mend, a number of the world’s richest people have been quietly dumping their American Stocks.
Billionaires who are dumping their stocks:
Warren Buffett, who has been the current administrations top ally when it comes to propping up the markets, might not be as optimistic as he pretends to be in public. In fact, Buffet has recently begun to dramatically reduce his exposure to stocks that depend on consumer purchasing. He has reduced his stock exposure in these companies by over 21% and has even sold of his entire stake in the computer parts company Intel (7,745,000 shares).
The controversial billionaire George Soros, has also been moving at a frenzied pace to sell off his stocks in all financial companies. According to his SEC filings, Soros dumped his entire stake in all major financial stocks. He completely dumped Citigroup (420,000 shares), JP Morgan (701,400 shares) and Goldman Sachs (120,000 shares), leaving himself with no exposure to the American financial markets.
Interestingly, at the same time Soros started dumping these financial stocks, he started pumping major money into the Gold markets. During that same period, Soros more than doubled his investment in the SPDR gold trust ETF.
History is filled with examples of why we need to take notice….
It’s really not a secret that these billionaires can literally manipulate the markets into doing their bidding. When the average two-bit thief does it, they call it the pump and dump. This is when a scam artist buys a number of shares at a low price and then starts spreading rumors about how that stock will hit new highs.
As the price of the stock goes up, the scammer sells his stocks, leaving the investors who got caught up in the scam holding the worthless stocks as the company tanks. When these billionaire investors do it, the powers that be consider it standard operating procedures.
When these people start making moves, you really need to take notice. I’m not saying you need to panic, after all and as noted in the example above, that may be exactly what they want you to do. But one thing is for sure, when these people act, they do so for a reason. In fact, many say the 1929 stock market crash could have been predicted by watching what the insiders at the time were doing. Probably one of the most famous examples of this is the Kennedy family.
Joseph Kennedy, father of the late John. F. Kennedy, made the family’s fortune by selling off all his stocks right before the 1929 crash. The carefully crafted media tale, says that Kennedy decided to sell his stocks after overhearing shoeshine boys speculating on the stock market. But if you believe that then I’ve got a bridge to sell ya!
The fact is, the people in power know what’s coming well before the suckers, who follow their every move, ever have the chance to make their own moves.
Do these Billionaires know something that the Government isn’t telling us?
In my opinion, the writing is on the wall. As we have pointed out on many occasions in the past, this deck of cards is just waiting to come crashing down.
16 trillion in debt, 46.7 million on food stamps, 49 percent of Americans who receive at least one government benefit, and a real unemployment rate that is closer to 22%; the real economic numbers show that not much has changed since the 2008 financial crisis. In fact, things seem to be getting worse as our country falls even deeper into the financial abyss.