RICHARD RUSSELL: I See A Bearish Pattern In The Latest Buffett, Paulson, And Soros Trades
Apr 17, 2013, 22:16 IST
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And the latest plunge in gold prices doesn't have him worried.
"Does this mean that the great gold bull market is over?," he asked via King World News. "My intuition says no -- I believe we have not seen the end of the gold bull market. However, I do think that this is the “wipe-out, clear-out” correction that will leave gold free of late-comers and non-believers." Russell finds some solace in the actions of billionaire investors Warren Buffett, John Paulson, and George Soros. He sees a bearish pattern in their latest trades. Via King World News: What do billionaires Warren Buffet, 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. 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 sold roughly 19 million shares of Johnson and Johnson. Berkshire has reduced his 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. Fellow billionaire John Paulson dumped 14 million shares of JP Morgan and dumped his entire position in Family Dollar and consumer goods maker Sara Lee. To wrap up the trio of billionaires, 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. ... the billionaires are thinking that consumption is heading down and that America's consumers are close to going on strike.Read more at KingWorldNews.com.