Billionaires Dumping Stocks

[Rico]

Wanted to know what people thought about this story about billionaires dumping stocks.  Bryan - are we headed to a market collapse?

http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/2012/08/29/id/450265?PROMO_CODE=110D8-1&utm_source=taboola

[Bryancd]

First, to reply to the specific investors cited in the article. Buffett has been making as many new acquisitions as he has liquidations, I haven't seen anything in his recent investment moves, which are closely followed by Wall Street, to be out of the ordinary. If anything he has been pretty bullish on American companies recently, I would suggest the sales mentioned are less an indictment of the market but more him raising cash for things like his recent acquisition of Heinz brands, that was a major deal. Paulson's dumping shares where he has gains makes sense as he has HUGE positions in gold which have gone against him, so he has margin calls to settle up and needs the cash. Soros, well, I am not a fan of the bank stocks right now either. So nothing about these three cited changes in investments strike me as particularly bearish.

Having said that, i am VERY cautious/negative on the market right now and have moved mostly into cash, municipal bonds, emerging market debt, currencies, and floating rate funds. I even moved my 401(k) into cash for the time being. Be careful out there with your money....

[Rico]

So, how does one move a 401K into cash???

[Bryancd]

Just call them up and ask if you can move all investments into a money market fund option. Just don't forget about it and leave it there for the next 15 years. In fact, Rico, when and if you start your new job, we can roll your current 401(k) into an IRA with me and I can take care of it for you. :)

[Meds]

Bry I have a great bank account that you can put your cash in. ;)

[Bryancd]

Bry I have a great bank account that you can put your cash in. ;)

(run's off, grabs cheque book ;)

[Meds]

Lol :)

[Bromptonboy]

Sell Mortimer! Sell!!

[Feathers]

(run's off, grabs cheque book ;)

Hey Meds, he even spelt cheque correctly for our benefit :D

[billybob476]

(run's off, grabs cheque book ;)

Hey Meds, he even spelt cheque correctly for our benefit :D

Next we need to work on colour and favourite.

[Bromptonboy]

I think he keeps the cheque book in the boot of his auto..

[Feathers]

I think he keeps the cheque book in the boot of his auto..

Some comment about pants seems called for here but I'll resist. I don't want to take us even more :offtopic

[Dangelus]

Hey Bryan, you have any thoughts on Bitcoin? A lot of people talking about it now it's becoming a little more mainstream. There is even a podcast about it. :-)

[Bryancd]

It's not a publicly traded company so I haven't looked at it very much beyond news stories I read.