Author Topic: Billionaires Dumping Stocks, Economist Knows Why  (Read 572 times)

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Offline flowers

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Billionaires Dumping Stocks, Economist Knows Why
« on: January 03, 2014, 12:55:01 PM »


Offline truth_seeker

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Re: Billionaires Dumping Stocks, Economist Knows Why
« Reply #1 on: January 03, 2014, 01:19:11 PM »
If it is in the news, it might be old news.

And for every seller, there is a buyer. Who is to say focus on the seller, instead of the buyer?

Are we expected to see this as "Buffett selling, he's the smart one?"

Buffett is not a day trader, trying to pick highs and lows, ups and downs.
« Last Edit: January 03, 2014, 01:22:21 PM by truth_seeker »

Offline Oceander

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Re: Billionaires Dumping Stocks, Economist Knows Why
« Reply #2 on: January 03, 2014, 10:11:36 PM »
If it is in the news, it might be old news.

And for every seller, there is a buyer. Who is to say focus on the seller, instead of the buyer?

Are we expected to see this as "Buffett selling, he's the smart one?"

Buffett is not a day trader, trying to pick highs and lows, ups and downs.


The question is:  where are they putting their money now?  Considering that Buffett is a little better at investing than most, I'm less interested in where his money was than where it's going to be.

On the topic itself, assuming this to be true, it doesn't necessarily point to a market correction so much as it does to a fall in consumer sentiment, which will hurt those companies that are most dependent on consumer spending.  I wonder if grocery stores are being dumped as well, since grocery stores tend to sell must-have staples for which buying is relatively constant.

Offline olde north church

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Re: Billionaires Dumping Stocks, Economist Knows Why
« Reply #3 on: January 04, 2014, 08:15:45 AM »
The question is:  where are they putting their money now?  Considering that Buffett is a little better at investing than most, I'm less interested in where his money was than where it's going to be.

On the topic itself, assuming this to be true, it doesn't necessarily point to a market correction so much as it does to a fall in consumer sentiment, which will hurt those companies that are most dependent on consumer spending.  I wonder if grocery stores are being dumped as well, since grocery stores tend to sell must-have staples for which buying is relatively constant.

Is Buffett really better or do the media focus on his wins and not his losses AND when you've go billions, what's a couple hundred million tossed to the dogs?
Why?  Well, because I'm a bastard, that's why.

Offline massadvj

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Re: Billionaires Dumping Stocks, Economist Knows Why
« Reply #4 on: January 04, 2014, 08:41:54 AM »
If the Fed stops printing money, interest rates will have to go up.  If interest rates go up, yields on stocks and bonds will also rise.  If yields go up, valuation goes down.  The trouble is, there really is nowhere to run, unless you short the market.  Higher interest rates will affect virtually every market in existence since higher borrowing costs translate into less spending power at every level.

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Offline Luis Gonzalez

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Re: Billionaires Dumping Stocks, Economist Knows Why
« Reply #5 on: January 04, 2014, 09:51:57 AM »
The Kondratiev wave cycles are being accelerated by advances in technology, so the cycles of booms and busts are becoming increasingly volatile and even erratic, with shortened spans between the peaks and valleys.

The fact that they cycles are being shortened, makes them more dependent on consumer spending habits. People like Buffet apparently know this and are being proactive to protect their holdings.

The next cycle is due in 2015 (not an exact date), but that's the start of the upswing, which means that the descent into the "valley" (or as Kondratiev put it, the economic winter) is just about due.

P.S. Economists are predicting that the next Kondratiev wave will revolve around health care (NOT green energy), which may shed a light on the government's urgency to "reform" that industry.

 

Offline Oceander

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Re: Billionaires Dumping Stocks, Economist Knows Why
« Reply #6 on: January 04, 2014, 10:24:26 PM »
The Kondratiev wave cycles are being accelerated by advances in technology, so the cycles of booms and busts are becoming increasingly volatile and even erratic, with shortened spans between the peaks and valleys.

The fact that they cycles are being shortened, makes them more dependent on consumer spending habits. People like Buffet apparently know this and are being proactive to protect their holdings.

The next cycle is due in 2015 (not an exact date), but that's the start of the upswing, which means that the descent into the "valley" (or as Kondratiev put it, the economic winter) is just about due.

P.S. Economists are predicting that the next Kondratiev wave will revolve around health care (NOT green energy), which may shed a light on the government's urgency to "reform" that industry.

 

That "reform" doesn't seem to be capable of doing anything other than wrecking the health care industry.

Offline Luis Gonzalez

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Re: Billionaires Dumping Stocks, Economist Knows Why
« Reply #7 on: January 04, 2014, 11:27:41 PM »
That "reform" doesn't seem to be capable of doing anything other than wrecking the health care industry.

If the next boom is healthcare, and government controls health care, then whatever economic benefits may come from a boom, will be reaped by the government.

Offline jmyrlefuller

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Re: Billionaires Dumping Stocks, Economist Knows Why
« Reply #8 on: January 06, 2014, 08:29:04 AM »


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