Is This the Final Chapter in Buffett's Tech Journey?Warren Buffett’s once unshakeable partnership with Apple seems to be reaching a critical juncture, leaving market watchers with more questions than answers. For years, Buffett and his Berkshire Hathaway embraced Apple, with Buffett even calling it “the greatest trade of all time.” Yet, with Berkshire’s recent decision to reduce its stake by a staggering 67%, the dynamic is shifting. While initial statements attributed the sales to tax planning, the sheer scale hints at a deeper strategy. This raises the question: is this a calculated portfolio rebalancing or the beginning of a more profound shift in Buffett’s investment philosophy?
The timing of these sales isn’t random. Apple now faces several hurdles, from slower growth projections in a competitive smartphone market to increasing regulatory scrutiny in the U.S. and Europe. The conglomerate’s move coincides with Apple's potential weaknesses, suggesting Berkshire is not immune to the broader industry concerns, such as competition in China and challenges in artificial intelligence—a field where Apple appears to be lagging.
Interestingly, some experts speculate that the recent passing of Charlie Munger may have influenced Buffett’s decision. Munger, who historically favored Apple, played a pivotal role in Berkshire’s tech investments, balancing Buffett’s more cautious stance on technology. Now, Berkshire’s shift could signal a strategic return to its foundational values, preferring stability over tech’s unpredictable currents.
As Berkshire Hathaway maneuvers through these adjustments, Apple remains its largest equity holding, hinting that Buffett hasn’t fully turned his back on the tech giant. But with record cash reserves and a keen eye on emerging opportunities, the next steps Berkshire takes could redefine not just its portfolio but perhaps even broader investment trends in the years to come.
Warrenbuffett
BRK.B ratio to SPX daily.Hello community,
I had fun doing the ratio between Warren Buffett's stock and the SP500 via the SPX, since the beginning of the year.
The result on the graph, i.e. 5.11% in favor of Warren.
Grandpa Warren, still holds the road, despite his 94 years.
Experience and wisdom have struck again.
Bravo the artist.
Make your opinion, before placing an order.
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Bank of America (daily - log )Hello community,
Following the publication of Warren Buffet's results, I looked at the Bank of America stock.
Since the beginning of the year, performance 28%
Why did you sell the stock, there must be a reason that I don't know.
Upward trend, I put the 3 accumulation zones on the chart.
Make your opinion, before placing an order.
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Is Warren Buffett Losing Faith in Bank of America?A Strategic Shift with Far-Reaching Implications
Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has taken a significant step that has sent ripples through the financial world. Berkshire, a long-time major shareholder of Bank of America (BofA), has been steadily selling its stake in the bank. This strategic move, totaling over $3.8 billion in sales, has raised eyebrows and sparked speculation about the future of BofA.
Buffett's decision to reduce Berkshire's holdings in BofA is a departure from his typical investment strategy, which often involves long-term, unwavering commitments. This shift raises questions about his perception of the bank's prospects and the broader financial landscape.
The implications of this move extend beyond Berkshire and BofA. As one of the most closely watched investors in the world, Buffett's actions can influence market sentiment and investor behavior. His decision to sell BofA shares could signal a potential shift in his outlook on the banking sector or broader economic conditions.
To learn more about the reasons behind Buffett's decision, the potential impact on Bank of America, and the broader implications for the financial sector, please visit our website.
Berkshire Hathaway - BreakoutHello Traders, welcome to today's analysis of Berkshire Hathaway.
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Explanation of my video analysis:
In 2013 Berkshire stock broke above a key resistance area which was acting as resistance for multple years. This breakout was followed by a +300% pump towards the upside. Last month Berkshire stock then also broke out of a long term triangle formation. If we get a retest back to the previous resistance mentioned in the analysis, I will be looking for long-continuation setups.
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I will only take a trade if all the rules of my strategy are satisfied.
Let me know in the comment section below if you have any questions.
Keep your long term vision.
Berkshire (BRK.B) -> Trend ContinuationMy name is Philip, I am a German swing-trader with 4+ years of trading experience and I only trade stocks , crypto , options and indices 🖥️
I only focus on the higher timeframes because this allows me to massively capitalize on the major market swings and cycles without getting caught up in the short term noise.
This is how you build real long term wealth!
In today's anaylsis I want to take a look at the bigger picture on Berkshire Hathaway.
At the moment you can see that Berkshire stock is retesing its previous all time high which is roughly at the $350 area and we might see another short term bearish rejection.
However considering that the overall trend is still very bullish I am waiting for a simple break and retest of the current resistance level and then I am looking for a trend continuation.
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I know that this is a quite simple trading approach but over the past 4 years I've realized that simplicity and consistency are much more important than any trading strategy.
Keep the long term vision🫡
Berkshire Hathaway Q1 Earnings Rise on Insurance ReboundWarren Buffett's Berkshire Hathaway reported strong earnings growth in the first quarter of the year, primarily driven by the recovery of the conglomerate's insurance business. Operating earnings, which include profits from Berkshire's wholly-owned businesses, increased by 12.6% year-over-year to $8.065 billion. Insurance underwriting profit surged to $911 million, a sharp increase from $167 million a year ago, while insurance investment income also rose by 68% to $1.969 billion from $1.170 billion. The turnaround in Geico, which saw an underwriting profit of $703 million, was a significant contributor to the overall insurance business success.
On the other hand, the company's railroad business BNSF and energy company posted year-over-year earnings declines. However, other controlled businesses and non-controlled businesses saw slight increases from the same period last year. Berkshire's cash reserves also increased to $130.616 billion from $128 billion in Q4 2022. Additionally, the company repurchased $4.4 billion worth of its own stock, the most since Q1 2021, up from $2.8 billion at the end of last year.
Berkshire's net earnings, which include short-term investment gains, rose to $35.5 billion in Q1 2023, up from $5.6 billion in the same period last year, reflecting a first-quarter comeback in Warren Buffett's equity investments such as Apple. Nonetheless, Buffett cautioned investors not to pay too much attention to quarterly fluctuations in unrealized gains on investments. These results were released ahead of Berkshire's highly anticipated annual shareholders meeting, known as "Woodstock for Capitalists."
Despite lagging behind the S&P 500's 7.7% advance with a 4.9% increase in its Class A shares this year, Berkshire's stock is still less than 3% below its all-time high.
Berkshire Hathaway Inc. New WCA - Classic Rectangle PatternHello and thank you for taking the time to read my post. Today, we analyze Berkshire Hathaway Inc. New's chart on the weekly scale, focusing on a classic price pattern called the "Rectangle Pattern." Berkshire Hathaway Inc. New is a diversified financial services conglomerate, traded on the NYSE under the tickers BRK.A (Class A shares) and BRK.B (Class B shares).
Classic Rectangle Pattern:
The classic rectangle pattern is a chart pattern formed when the price of an asset moves between two parallel horizontal lines, representing support and resistance levels, over a period of time. In essence, it reflects a consolidation phase where the market is undecided about the direction of the trend.
Analysis:
In the case of Berkshire Hathaway Inc. New, we observe a 322-day rectangle with several touching points. The upper boundary is at 320$, and the lower boundary is at 264$. The price chart has just broken out of the rectangle and is re-testing the old resistance as support, which makes an entry interesting. All this happens while we are above the 200 EMA, which supports a bullish environment and an idea on the long side.
Additional Analysis:
The recent breakout from the rectangle pattern and the re-test of the old resistance as new support suggest a potential upward trend continuation. As we are above the 200 EMA, the bullish environment is further supported, making long positions more attractive. The price target is at 376$, which represents a potential ~17.5% price increase. On the way to the price target, we can expect to encounter resistance at 360$.
Conclusion:
The Berkshire Hathaway Inc. New weekly chart showcases a classic Rectangle Pattern, reflecting a consolidation phase in the market. The recent breakout and re-test of old resistance as support, combined with the price being above the 200 EMA, signal a potential continuation of the bullish trend. With a price target of 376$ and intermediate resistance at 360$, traders should remain vigilant and consider proper risk management strategies when entering long positions.
Company: Berkshire Hathaway Inc. New
Ticker: BRK.A (Class A shares) / BRK.B (Class B shares)
Exchange: NYSE
Sector: Diversified Financial Services
Please note that this analysis is not financial advice. Always do your own due diligence when investing or trading.
Best regards,
Karim Subhieh
Applying Warren Buffett and Peter Lynch valuations : SNAP stockWhen I was new, I traded just the picture of prices.
Later after living through a full cycles, I learned stocks were actually businesses.
Business sell stuff to customers and generate revenue each year.
Businesses have cash flows and earnings.
Thats why when we look book 10 to 20 years, most businesses are more valuable today then back then.
Valuation looks at what things are worth today and also looks at future potential.
Financial math is discounting the the future growth to make sure you get the best deal you can.
Valuation keeps you grounded.
You can still day trade, swing trade, and option trade all you want. Valuation just helps you know the true value inside the business so you avoid some losers and pick more winners.
Cheers and good luck on your journey!
#snap #warrenbuffett #peterlynch
Price is what you pay, but value is what you getWarren Buffett is the most successful stock investor in the history of the world. Of course, which we know now. "The Oracle of Omaha" - that's what fans of his "magical instinct" call Buffett. But is that the point?
As an 11-year-old child, little Warren was inspired by the possibilities of the stock market and invited his sister to participate in his first investment. These were preferred shares of Cities Service. The sister agreed to take the risk and Warren bought 3 shares at $38.25. But then, the wave of enthusiasm turned to disappointment and guilt - the shares fell to $27. Buffett's first investment "enterprise" lost 29% of the amount of investments that were borrowed. We can only imagine how the young investor felt at that moment, but I think this feeling is familiar to many: positive expectations clashed with the harsh reality of the stock market. Warren didn't sell shares. But when the price for them reached $40, he did it instantly. Apparently, considering this whole undertaking a mistake. The income was 4.6%, the sister received her money back. Everything worked out. Surprisingly, Cities Service's share price rose to $202 a few days later. Or +428%, Warren!
The entire subsequent history of Warren Buffett confirms that he drew the right conclusions from the experience of his childhood. He realized that the price on the stock exchange may not reflect the value of the company itself. Buffett began to study accounting, the principles of fundamental analysis of enterprises, the ideas of Benjamin Graham. This allowed him to develop an approach that consisted in determining the real value of the company, different from the one that we see on the stock exchange.
"Price is what you pay, but value is what you get".
From myself I will add: and if the value is higher than the price - such an investment is considered reasonable.
In the chart above, the price history of Buffett's main holding company, Berkshire Hathaway . As well as the S&P500 index. As you can see, his company "overtakes" the index, which means it shows much better performance than the average value of 500 US companies.
Perhaps, in addition to deep analysis of the companies' business, Buffett's unique investor instinct helps, I don't know. But the fact that he is a real Wizard of our time is an indisputable fact for me.
Betting agains WARREN BUFFETT is it smart?Hi everyone, Yurii Domaranskyi here. Let's take a look at the chart:
1. Price levels are working good
2. Globally and locally uptrend, the price at all-time highs
3. THe levels is confirmed by a touch
4. It was a near test
5. The model I'm going to trade "false breakout with 2 bars"
6. There is accumulation in the highs
7. The price closed in the short area
8. Enough room for trade with risk/reward 1 to 5.10
9. no model "ascending lows" anymore
10. no news for the last 10 days
11. the price came from below
12. BEWARE report on February 10! I'm going to out before that date.
Potential risk/reward ratio = 1 to 5.1 meaning that potential risk 100$ with the possibility to make 510$
If it does make sense to you, press a thumb up! 👍
BTC/USDT The Volume is not enough! #SHORTI am so sorry for just basing my TA with how and what I feel...
now I ve been checking the market and its movement together with the FUDs and good news...
FUD = BTC Russia Tracked??? (FBI)
Good news = Defi eyed by Amazon; hath 500$ Million to BTC by Warren Buffett's Berkshire Hathaway.
Considered TA: RSI ATR VOL and the Movement at 1D 4hr and 1HR considering the fri sat sun being the weakest days.
We still have Huge fear and denial in the market.
But the people who wants to Hodl and learn are many they are just silent.
sold 50% to buy that 27 26 25
The myth of Warren Buffett and Buy & HoldFirst of all let me note that a few years ago an university professor looked into Buffett history and found that according to filings he had a turnover of 100% (correct if I'm wrong he only checked the 13F they do not show other investment than stocks and stocks that have been held not long enough to be filed).
Also he held 80% of stocks for less than 2 years.
Here is what the chart for a stock looks on a daily chart:
Absolutely disgusting. Giant candles, tiny candles, huge gaps, no trend, no pattern, valuation doesn't matter, government doesn't matter, etc.
Looks like gambling or trolling. Without dumb money hedge funds are not performing, and quants either they're only as big as the retail market is (both day gamblers & baghodlers).
Versus a chart over 25 years...
Some thinking can actually take place as opposed to the 1Y chart that is just ridiculous.
Is it a good company? Is it expensive? The trend? And so on.
The long term advocates do seem to mix everything up and throw Forex in there (because comparing 2 economies is the same as buying a company).
"Buy and hold is the only proven way bla bla bla everything else is bolocks" yawn I get it you're braindead. Man these investment advisors.
2Y chart of FX (and 1Y) looks much better than a long term one, as opposed to 1/2Y stock charts being disgusting but 20Y looking exploitable.
Let's take a look at some of his purchases.
The stocks that went against him and he closed rapidly do not attract any attention so there is nothing on it and I did not want to go over his 13F for hours, most of his trades recently are breakeven or small wins anyway from what I have seen.
So we are starting with some of those ones.
Buffett Phillips adventure
Berkshire Verizon adventure
And I don't even know why he held that long, maybe there was nothing else around. Idk it just wouldn't go up, looks bad already just a few months after BRK bought. Who knows what other positions they had at the time (shorts are not reported)?
A quick win
Watch out all bagholders are now learning from his "mistakes" and making sure they never sell too early their bags, of course they also know diversification is for idiots and they should make sure to hold as little company lottery tickets as possible, making sure to:
- Have very big stakes
- Never sell (knowing that 97% companies go to zero and 90% of the remaining 3% perform worse than inflation)
Maximizing as much as possible their odds of losing everything while freezing their capital and minimizing their odds of taking advantage of opportunities 👍
The herd blindly following Berkshire and all institutional investors feeling "safe" to buy companies after Buffett bought (if their clients complain they say he did it so...) = perhaps this allows BRK to have a high hitrate since they are famous?
Of course no one follows them after they sell, there is always a good excuse to hold a bag.
If Warren/Berkshire countless small wins & breakevens are hard to find, many losers are impossible to find, his winners sure are extremely easy to find actually they are even impossible to miss as they are constantly thrown in our faces endlessly.
A famous one
Another famous one
And of course... :)
The only loser I heard of, of course the one he just kept holding, a source of inspiration for success & motivation coaches and all dum dums that dream of lambos
Hundreds of losses or struggling winners he cut off quickly? Who cares! They don't exist lalala I cannot hear!
OMG say what? He held a bag with red candles? OMG long term just noise bla bla bla IQ doesn't mean anything strong hand to victory!
"Buy cheap". If it's worthless crap then it is expensive not cheap... 20 cents for a bag of soiled toilet paper is not cheap even if it is 20c...
Some stories
The Coca Cola chart over 2 decades when he bought:
And then...
In 2007 Buffett got into Forex a bit and bought the Brazilian real
He said something like "we can't get a big position like we could with the euro". Nice, Brazil is too small for Berkshire.
Forex gets so much bad reputation from ignorant clowns, if dumb money is doing better with stocks (the number of baghodlers would suggest they are not) it would simply be because they are perma bulls in a big long term 50 years or more bull market.
Forex is not super long term like this, so mistakes will kill the noobs much faster. Holding a stock bag will take years or decades to wipe out its investors, but in the end they are just as bad and just as rekt. Forex IS shorter term, it is not gambling or less valid because it is shorter term, no, we are talking about a different asset that works in different ways, and since it is shorter term clowns and bagholders will be wiped out much more quickly.
The leverage is not "what makes Forex so dangerous", the issue with noobs is not the leverage it is being bad, and fighting trends and bagholding. Since they hold losers until being wiped out, it will be much faster with FX than with stocks or Bitcoin. Bitcoin baghodlers have been at it for 3 years and are still alive. If they held FX going against them they'd be rekt long ago.
Oh and then since FX is not being sold as a magical holy grail to hold passively "any idiot can make it" and brokers spend millions to advertise day trading, the noobs all end up being day gamblers even thought zero professionals do it, and day gambling is the fastest route to rekt. High costs, high randomness, not holding winners, oh and the majority of gamblers dumb enough to day gamble obviously do not have the mental abilities to figure out 2% risk per trade day gambling is simply dense because your actual risk will be something like what? 50% over 1 month? As opposed to 5% over a month using 2% risk with a logical strategy. They just go for x% no matter the risk over time like it doesn't even exist which makes absolutely no sense. And they think the risk is the same...
Forex investors don't get as far as I am concerned the winrate stock investors get, with the exception of retail forex gamblers which trade profit for winrate ye pretty easy to have a high winrate if you don't care how much you lose, and another exception perhaps would be when Buffett trades it because he goes for a solid unbreakable multi year trend and very rarely.
Lower winrate buuuut (obviously there is a but otherwise why even touch FX?) more opportunities. So you can actually have less portfolio noise you won't be down 20% the year the S&P goes down.
In the end it all ends up the same way. The best FX investors over decades got returns of 30% a year, the best stock investors over decades got returns of 30% a year.
"Experts", investment advisors, nobel prize economists with plenty of degrees (aka clueless idiots), they're going to tout bagholding index funds as the holy grail, beg baggies to never sell because "just noise - last time they said - 13% muh snp - buffett long term", and constantly bash fx & even commodities, and most people are brainwashed to listen, they just fall for the most obvious bs just look at how many people cry when some vegan activists "show terrible images" of a farm that are obviously made up (they could wait for a farmer to have an accident then go visit his abandoned farm a few days later when animals died and feces accumulated and at night then go "see those horrible conditions? They just die and are left for dead and there are feces everywhere and animals are abandoned in the dark").
No free lunch. No holy grail. No market that throws free money because "muh positive sum".
Markets are chosen by personal preference (and a bit by what is volatile at a specific moment of course but over decades they all have something to offer).
Let me tell you one thing: commodities & forex have hedgers. Therefore it is a positive sum game for speculators in my eyes.
Whereas stocks? Only investors trying to make money ripping each other off. This is the real zero sum pyramid scheme.
Warren looks for winners, trends & supply demand imbalance just like anyone else. The time horizons are different, the reports you read are different (shareholder letters or central bank minutes or the OPEC MOMR), the winrates are different (and number of opportunities which evens it out), but the way you approach it and the fundamental idea are really the same (trend, new highs, overextended trends like petrochina that went down shortly after Buffett sold, pullback = discount that is a free cheap entry, position sizing, trailing, big winners often being those that rapidly and strongly went your way and losers being those that chopped around for a long time ...).
Damn. Warren Buffett is not a wizard that magically picks up winning stocks but does what investors have been doing for possibly millenias.
FX meh trades will last days or weeks, stocks 1 to 4 years maybe.
Forex winners last weeks or even months, stocks 5 years to decades.
Why would you sell a stock winner that keeps going up? Only if you think it is very expensive (or you hate making money), but if it is already expensive after just 1 or 2 years then you clearly messed up by entering a trade on a stock that was expensive!
Either way you are in for the long run, it is something to make a multi decade career out of, sorry roulette day traders & passive bagholders, taking dozens of trades over a year that will last a few weeks or just a few like Buffett that will last a few years. Learning takes a long time, researching takes a long time, growing an account takes a long time, just the same no matter the market no matter the strategy. The only free lunches are really only found with insider trading... They end up getting lots of free lunches in jail... free hugs too.
Warren Buffett Invests in Japan - Economic War 2020 - CurrencyAs the world watches the USA capital markets squeeze themselves into just 5 or 6 large cap, over-hyped, mania stocks (Tesla, Apple, Amazon, Google, Facebook, Microsoft, etc.), the richest (1%) are avoiding U.S. stocks altogether. Warren Buffett has just announced his buy-ins into Japan (over past 12 months). *Warren Buffett made gained his massive "unrealized" returns by accumulating stocks just after the great depression. He then held pretty much his entire lifetime. I don't believe Warren has an edge at all anymore. The world has moved lightyears ahead of what the baby boomer generation can generally comprehend. Sorry Warren, stash the cash, go enjoy your family. Your best days are behind you.
Invest in small cap USA or watch the USA struggle for years. Sad stuff. DON'T INVEST IN JAPAN LIKE WARREN. Don't live on leverage like the majority. Invest smart. CONTRARIAN.
INVEST IN $GNLN or other small cap USA companies. Go USA!!! #cannabis
#federalize
#risksavageinthemarket
#maxcreativeinvesting
#watchthis
#stockmarketcrash2020
#cannabisboom2020
#greenlaneholdings
Potential killzones on EasyJet (1d) and airlines overviewIt's impossible for me to predict what will happen with EasyJet. So, I'm showing two potential killzones on a daily time frame.
My probability estimate is for further moves south. I think the issues here are about entry points, for those who missed the deep dive. It's dangerous though at this time.
Globally all civilian commercial airlines are in deep trouble (except Boeing perhaps). Govts and central banks simply cannot bail them all out. Air traffic will be seriously reduced over the next year. We can therefore expect further travel south for EZJ and other airlines. Berkshire Hathaway just closed on $50 Billion in losses on airline stocks.
If one is shorting EZJ and other stocks much 'bottle' is required to suffer the vacillations in price. It's unlikely to be a smooth travel south.
Disclaimers : This is not advice or encouragement to trade securities. No predictions and no guarantees supplied. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
KHC, Kraft Heinz Co. - Potential Breakout on H&SNASDAQ:KHC
One of the best set ups.
Currently on Kraft Heinz is developing a classic reversing head and shoulders.
It is also one of the companies in the portfolio of the world's largest investor, Warren Buffett.
If we think about the potential recovery on the stock value, the Risk Reward becomes remarkable and the % of trade realization at profit remains as usual around 45%.
So we've set the alerts and we're waiting for a neckline breakout.
Stay Tuned!
BTT Hype not necessarily overJustin Sun made his "big" announcement today, and per usual, the rumor caused a price spike on BTT as well as TRX the other day.
I'm still bullish on BTT; call Justin Sun what you will, but his marketing is brilliant. I like to think the product he puts out is at least half as good as his marketing, even though I constantly see many people bashing him on Twitter and writing Tron and Bittorent off as scams. He's a go-getter. Literally nobody else in the crypto space (to my knowledge) has even attempted to try to knock some sense into old man Buffett. Being the legend he is, I'm so surprised that for all this time he's been crapping all over Bitcoin, but somehow thinks there's a future in Blockchain - "Blockchaiiiiiin not Bitcoiiiiiin!"(Shout out to the Crypto Lark for the lyrics)
Imagine for a second that Justin Sun becomes a main catalyst for mass adoption. You'd get at least one "banana town" out of Carter Thomas, that's for sure.
Whether you think we're just about to enter another crypto bull run in the next two months or think it won't happen for another two years, Bittorrent is going to be Yuge. Mark my words right now.
For the immediate short term, I'm waiting for this down channel to play out, and will obviously be looking for a breakout at the top of the channel, contingent upon seeing an increase in bull volume.
If you've been riding this BTT wave for the past two weeks now, awesome. Lots of fun. I'm always trying to find diamonds in the rough to add to my portfolio, if nothing else, for the thrill of it possibly going huge.
In this case, I think BTT has ridiculous potential. I've had a lot of fun in the past week, and the chart is looking good.
Never financial advice; I'm just another dude talking about crypto on the internet! Deuces!
Just a Correction? Don't follow the HerdThis is an Update on my previous analysis this time I updated the H&S pattern to the correct drop target, with a few more indicators. And adjusted the drops to match similar time frames to the 08 crash. "The Economy Moves Up like a stair but it Drops like an Elevator"- Phil Town
OVER EXTENDED & PEOPLE ARE SPREADING FOMO
After a +9 year Bull run, the market is going strong. Everyone is buying and everything is going great, Weed stocks are going to make me rich! Weed stocks like NASDAQ:TLRY are going parabolic! Well until the last few days it isn't... We've seen and heard stuff like "Its just a correction." "Buy the dip." " Great time to Buy more." "Dollar Cost Average" etc. Well I'm here to say otherwise!
SMART MONEY IS GETTING OUT
If you've been following Warren Buffet , Ray Dalio and even Mark Cuban and all the other big Financial Investors/Smart Money you probably heard they have been pulling out of the stock market in Spring and are stockpiling cash. The problem is we are nearing the very end of the bull cycle and we are overdue on a Recession.
ECONOMIC IMPACTS
I love being a bull as much as the next guy especially since I have an online business but this growth is unsustainable with company share buy backs this October's Blackout is just the tip of the iceberg, the housing market slowing down due to climbing mortgage rates places like Texas and California are having a tough time selling Houses, Fed raising rates, weed stocks outpacing their true value, the Trade War Tensions between China and US.
HISTORY REPEATS ITSELF/ MARKET CYCLES
The main causes of the Great Depression and Great Recession lie in the actions of the federal government. In the case of the Great Depression, the Federal Reserve, after keeping interest rates artificially low in the 1920s, raised interest rates in 1929 to halt the resulting boom. That helped choke off investment. Also, President Hoover signed into law the sky-high Smoot-Hawley Tariff, which stifled trade and damaged American exports throughout the 1930s. Finally, the President signed a large tax increase into law in 1932, which halted entrepreneurship. READ MORE: fee.org Everything there sounds very similar to whats going on except for the tax increases, we got tax cuts instead, phew.
If you don't believe me, Educating yourself from one of the best economists/hedge fund managers Ray Dalio on the BOOM & BUST Cycles :