We see a lot of end of the world doomsday predictions. As a matter of fact, we have been seeing them for the entire 25 plus years that we have been in the industry. Headlines of apocalyptic doom are designed to titillate the reader and trigger an emotional response. The desired emotional response is to have the reader buy books or participate in a workshop or program where they pay good fees to “gain insight’ into what the future holds. The latest email making the rounds is by a Robert Weidemer who predicts a 90% market correction!
Robert Wiedemer is not an acclaimed financial author nor acclaimed economist and the video of his interview is with Newsmax corporation which is an ultraconservative media operation; think Rush Limbaugh. The Robert Wiedemer email is one of these doom predicting emails that are currently making the rounds. When this one dies out there will be many more following.
There is an interesting article from the Pulitzer prize winning Christian Science Monitor where the author discusses the lucrative business of economic scare mongering.
As well here is a link to CNN Money where they also discuss Robert Wiedemer and the money making industry of predicting doom. It would seem that Mr.Wiedemer is not quite the financial oracle that he purports to be, having been Chief Executive Officer of Imark Technologies, a Nasdaq listed company which went bankrupt in 1998.. I am not aware of Warren Buffett enduring any bankruptcy procedures.
And speaking of Warren Buffett, the author seems to leave the impression that Mr. Buffett is bailing out of stocks. There is no surprise that Mr. Buffett is selling stocks as he is constantly buying and selling stocks and other securities and financial instruments. The same thing is happening with all our client portfolios as the portfolio managers constantly reevaluate the portfolio holdings. To suggest that Mr. Buffett is abandoning equities is simply a canard.
Mr. Buffett’s top 15 holdings alone total $92.5 Billion.
1. Wells Fargo $20.85 Billion
2. Coca Cola $16.26 Billion
3. Amex $13.56 Billion
4. IBM $12.64 Billion
5. Procter Gamble $4.25 Billion
6. Exxon Mobil $4.0 Billion
7. Walmart $3.89 Billion
8. U.S. Bancorp $3.16 Billion
9. Direct TV $2.52 Billion
10. Da Vita $2.36 Billion
11. Goldman Sachs $2.31 Billion
12. Phillips Oil $2.08 Billion
13. Moody’s $1.93B
14. General Motors $1.64 Billion.
15. USG Corporation $1.09 Billion
It’s interesting to note that these are all U.S. companies so it does not seem that Mr. Buffett has has lost confidence in the U.S. economy.
Anyway, we enjoyed having a look at the interview with Mr. Wiedemer and also enjoyed reading the disclosure at the bottom of the screen which states among other things: “ALL INVESTMENTS ARE SUBJECT TO RISK, WHICH SHOULD BE CONSIDERED PRIOR TO MAKING ANY INVESTMENT DECISIONS. CONSULT YOUR PERSONAL INVESTMENT ADVISERS BEFORE MAKING AN INVESTMENT DECISION. “