CLEAREST INDICATION THAT A TRUMP WIN COULD CRASH THE MARKET
Warren Buffet is clearly looking to minimise Berkshire Hathaway’s risk exposure associated with the US election outcome.
“Berkshire’s stock-selling spree extends for eighth quarter, with $166bn dumped over the period,“ reports the Financial Times in an article today. By slashing his stake in Apple he has boosted his cash holding to a record high. The only reason he would do that is because he thinks there is a real possibility of a Wall Street crash.
As the FT notes, Buffet "has built up the company’s cash position before, saying the mountain of liquidity gives Berkshire an ability to pounce in a crisis.” So, it is fair to assume he is anticipating a crisis.
As the FT notes, “The stock sales are a dramatic shift by Buffet.” And Buffet has said, “I don’t mind at all, under current conditions, building the cash position.” One reason he gave was the lack of attracting equities in the market currently. The other, more telling, reason he gave is “what’s going on in the world.”
He did not specify by that the outcome of the US is his only concern, and there are certainly other things going on in the world that should make him concerned. But it would be very surprising if the US election were not his main concern.
Buffet has not explicitly said if he backs Trump or Harris. But he previously backed both Hilary Clinton and Barak Obama, and has been scathing about Trump in the past. From that I would conclude that he is much more likely to fear a Trump win and its implications for the market than a Harris win. But I don’t imagine he is too impressed with either candidate.
Founder at Stealth Startup in Media Technology | Seasoned Leader with 15+ Years' Experience in Supply Chain Optimization & Strategic Partnerships
3 个月That didn't age well, dit it?
Innovation Strategist, Entrepreneur
4 个月Couldn’t see the article, but from your headline I am not sure you can connect Buffett’s investment moves to a prospective Trump win. There are many developments that will have far greater impact on the global economy, that have nothing to do with Trump in any context. In fact, even if he wins, it will not change much with these developments - they are baked-in. These are: collapsing western economies (Germany dropping like a rock), debt bomb, over-leveraged ~$2 quadrillion derivative market (this one will flatten the global economy if it crashes!), emerging blockchain global financial system alternative to Bretton Woods(BRICS), and the tragically dangerous escalating geopolitical situation. Every investor should be considering these factors, regardless of who wins the U.S. election.
Fintech Founder | Fundraising Investment Advisor | Support Office Engagement
4 个月Anyone who knows anything about Warren Buffet and Birkshire knows they don’t make investment decisions based on these assumptions.
Retired Finance Manager at Boeing and LOVING it!
4 个月Buffet is always looking for cash.
Founder & CEO, Enlightened Enterprise Academy
4 个月And this from the Economist, far from a natural supporter of the Democrats…. #evonomist #theeconomist #Trump #Harris # #risk #riskmanagement #USelection