Warren Buffett and Michael Burry's recent actions suggest an impending recession. 61% of Americans are living paycheck-to-paycheck. US department stores are experiencing higher credit delinquencies amid strained spending.
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insights INSIGHT
Buffett Signals a Recession
Warren Buffett dumping $8 billion in stocks signals his expectation of an impending recession.
He is shifting to cash because he thinks current stock prices are overpriced.
insights INSIGHT
Stock Market Basics and Buffett
The stock market reflects expected future cash flows and behavioral economics of investors.
Buffett's actions reflect belief that companies will be less profitable ahead, leading to lower stock prices.
volunteer_activism ADVICE
Use Treasury Bills Over CDs
Treasury bills offer higher yields with lower lockup periods compared to CDs currently.
Consider treasuries for liquidity while waiting to re-enter the stock market.
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It was bad enough that Michael Burry - the investor who profited from the subprime mortgage crisis by shorting the 2007 mortgage bond market - just took a $1.6 billion dollar short on the market again. Now, the man, the myth, the legend is that the great investor in world history - Warren Buffett - has just dumped $8 billion dollars of stock and is moving to a cash position. The boy think these are very telling signs of an impending recessionary economy by two men who know what they are doing. At the same time, a new report out states that 61% of Americans are living paycheck-to-paycheck and US department stores are seeing higher credit delinquencies amid strained spending. It's a wild episode that is capped by a special collaboration between Mitch McConnell and Jay-Z.
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