Billionaires Dumping Stocks, Economist Knows Why

Firstly, it's not uncommon for billionaire stock owners to shift big money around. Since they're such big traders that the market follows, they can also apply to the FCC to have transactions temporarily withheld until completed so as to avoid running the price of a stock up. They could see a better opportunity to invest, and be in the process of buying up a US stock right now. Maybe not, but this alone is no reason to sound the alarm. Buffet and the others still have a LOT of U.S. investments.

Second, the "historic performance" of stocks currently is a bit over-hyped. The S&P 500 is just back to 2007 levels, and we've seen some brutal drops since the middle of the month. [1] The stock market is NOT sunshine and roses.

All said, though, I personally believe Wiedemer is correct, though perhaps not to that scale. We should be terrified about "federal easing." It's a fact that the Reserve can't keep interest rates this low indefinitely, and trying to "stimulate" the economy in this manner was never supposed to be a long-term strategy.

It's a fact that interest rates will rise, and when that happens housing prices will fall. Gains gains in real estate, construction and manufacturing, which have just started coming back online, will tumble and fall. The Fed has been reckless, fearing criticism that it's not doing enough.

[1] https://www.google.com/finance?cid=626307