Billionaires Think Market Crash Is Coming Soon
“JPMorgan CEO, Jamie Dimon’s, big JPMorgan stock sale may be a warning sign, given his stellar track record at market timing.” That is a CNBC headline from this morning. This short post on X explains that Dimon timed the bottom of the market perfectly when he bought millions of shares in 2009 and 2016. So, in light of his impeccable insight and timing, one might think that his recent massive SALE of over 800,000 JPMorgan shares signals a market top.
The Walton family just sold $4.5 billion of Walmart Stock! This too is very telling, as Walmart sales may be the best recession indicator there is. What does the Walton family know?
In this post on X, we learn that politicians with tremendous inside information are also selling stock. And yes, I wonder what they know…
In this post on X, we learn that Warren Buffett is sitting on almost $170 billion in cash – a level we’ve never come close to seeing. Why is Mr. Buffett not in stocks now, if the market is booming?
And last but not least, Jeff Bezos recently sold $8.5 billion in Amazon stock – and that really makes me go “hmmm,” as Amazon is equal to Walmart on the recession-indicator scale.
I might add that Zuckerberg just sold almost half a billion in Meta stock too.
In this post on X, the Kobeissi Letter tells us that Apollo thinks the current AI bubble is even bigger than the 1990s tech/dot.com bubble.
And in this Masters of Business podcast, David Einhorn explains how index funds are massively distorting stock values because these massive funds buy the hot stocks en masse, irrespective of fundamentals. And that in turn sets the market up for a major correction.
When Will The Stock Market Correct?
So, do I think the stock market will crash tomorrow? No, but I do think it will correct at some point. This may, however, be like 1998 (two years before the 2000 crash) or it could be like 2006 (two years before the 2008 crash).
I obviously have no clue, but billionaires selling at levels we’ve never seen before is certainly telling.
In addition, many macro analysts remind us time and again that the stock market is NOT the economy and that it functions more like a giant casino than anything else (in sharp contrast to the bond market).
For example, it’s fascinating to see Japan’s stock market hit peaks even though Japan itself is in a recession.
Stock Market = Giant Wealth Transfer Mechanism
In this YouTube video, Joe Brown of Heresy Financial explains how the stock market is used as a giant wealth transfer mechanism. The bottom 50% of Americans, in terms of wealth, hold only $4 trillion of stocks while the top 1% hold $20 trillion – and the top 10% of Americans hold 92% of all stocks.
Mr. Brown explains, however, how the wealthy always seem to know when to sell at the top right when the middle class (with FOMO) is jumping in. And then the wealthy buy everything up again when the market bottoms (see Mr. Dimon above) at the expense of the bottom 90%.
All this is to say to readers and investors everywhere – be careful 😊
Investors riding out their gains might be wise to take some profits now – particularly if they remember all the billionaire dot-commers who ended up in bread lines when they thought that time was different.
Warren Buffett is likely sitting on a record level of cash for a reason.
