A single financial document has emerged that may hold the answer. According to a new SEC filing, Buffett is sitting on $55 billion in cash through his company Berkshire Hathaway. This is highly unusual behavior from a man often called “the world’s greatest investor.” It’s the biggest cash hoard the company has ever amassed, in the 40 years he’s been in charge.
At a cost of $29 million every single day he keeps his money out of the markets, from all outward appearances, this is a risky and costly gamble. Unless Buffett is sure a Wall Street crash is at our doorstep. Jim Rogers recently admitted to Yahoo! that he is staying far away from U.S. stocks. New filings also revealed billionaire George Soros’ massive short position on the S&P 500.
Previously, Soros allocated 3% of his portfolio to shorting the S&P. It’s a common practice major investors use to insure their positions against unforeseen pullbacks. But he just increased his short position on the S&P 500 over 5X fold, taking it to 16% of his entire portfolio.
That is an alarming sign that Soros is betting on a market collapse. And given his track record of predicting these events, it’s one we should not ignore. So the question remains: Why are some of the “greatest investors” betting against Wall Street?
According to Jim Rickards, the CIA’s Financial Threat and Asymmetric Warfare Advisor, they are taking emergency measures now before a historic economic meltdown strikes – one he, and many of his colleagues at the U.S. Intelligence Community, fear is unavoidable. In an exclusive interview with Money Morning, Rickards warned, “The signals we’ve been tracking are quite clear”
Rickards, a three-decade veteran of Wall Street’s biggest hedge funds and investment banks, knows billionaires like Buffett are well-connected to both the financial markets and U.S. government. During the discussion, Rickards shared a series of dangerous economic patterns that have recently appeared that he and those in the highest ranks of the intelligence community have been tracking.
What they reveal is an economy that has reached what he refers to as a “super critical state.” “Everybody knows we have a dangerous level of debt. That’s no secret.
“This nearly instantaneous stock market crash is just Phase 1. From the outside, nobody will see it coming,” Rickards explained.
Categories: Stock Markets