When they Sneeze we Catch a Cold

 

Is a stock market crash in the U.S. possible amid economic recovery?

That's not farfetched at all.

Among the most influential investors in America today are Warren Buffett, John Paulson, and George Soros. Their investing acumen has helped them amass billions of dollars and millions of followers.

With the stock market trading at record highs one would think they’re still buying U.S. stocks. But even as the New York Stock Exchange is up 165%, and the most important stock market indices are keeping pace—the S&P 500 has climbed more than 210% and the Dow Jones Industrial Average has increased 175%—it appears that the most visible and vocal billionaire investors are turning their backs on U.S. stocks. Are they preparing for a stock market crash in 2015?

Over the last couple of years, Warren Buffett’s holding company, Berkshire Hathaway, has been dumping its exposure to American stocks that rely on consumer spending.  Over a two-year period, Buffett’s holding company sold off 96.8% of its holdings in Johnson & Johnson. Berkshire Hathaway also junked its holdings in Kraft Foods Group, Inc. In the second quarter of 2012, Warren Buffett’s holding company held 58,826,390 shares; two years later, it held just 192,666 shares. That represents a 99.7% sell-off. The Procter & Gamble Company is still one of Warren Buffett’s top holdings. In just two years, Warren Buffett has dumped 11.5% of his holdings in Procter & Gamble.

It appears that other well-known billionaire investors are seeing a major correction and shedding their once-heavyweight U.S. stocks, too.

Billionaire investor John Paulson’s hedge fund, Paulson & Co., is unloading certain U.S. stocks, including JPMorgan Chase & Co., Family Dollar Stores, Inc. and The Sara Lee Corporation.

Billionaire business magnate George Soros, chairman of Soros Fund Management, sold his holdings in several banking giants in the first quarter of 2014, including JPMorgan, Bank of America Corporation, and Citigroup Inc.

Despite the stock market’s record run and Washington’s assurances that the economy is getting better, some of America’s wealthiest billionaires aren’t convinced. In fact, their recent actions suggest some sort of market crash is on its way.

And if the U.S. stock market is in the doldrums, it is highly possible that the Philippine stock market will be adversely affected as well.

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