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The Smart Money Is Selling the Farm

Phoenix Capital Research's picture




 

“Buy stocks! It’s a great opportunity! They present great value.”

 

This is the non-stop mantra espoused on financial media. It’s simply astounding given that

 

1)   Everyone with a modicum of sense knows stocks are in a bubble

2)   Financial media viewership is plunging to multi-decade lows (you think they’d consider changing the content?)

 

Here are a few thoughts no one  in the mainstream financial media seems to address.

 

First of all, corporate insiders are dumping shares at a pace not seen since 2000.

 

That’s correct. The folks who know more about their companies and future growth prospects than anyone in the world are unloading their shares as quickly as possible.

 

Investment legends are doing the same. Warren Buffett, perhaps the single biggest fan of stocks in the last 100 years is currently sitting on over $50 billion in cash. Buffett’s partner Charlie Munger recently commented that he has not bought a single stock in his personal portfolio in over two years.

 

Aside from Buffett and Munger, Carl Icahn, Stanley Druckenmiller and numerous other investment legends have warned of a potential market catastrophe. George Soros has even taken out a record size bet on the market collapsing.

 

Beyond the legends, institutional investors have been net sellers of stocks for most of 2014. The same goes for hedge funds. Do you think they’d be doing this if they thought stocks were offering a lot of opportunities and value today?

 

Market volume is collapsing to a dwindle and fewer and fewer companies area participating in the rally. Both of these are clear signs of a top forming. Nearly half of the stocks on the NASDAQ are down over 20% from their recent peaks.

 

Global growth is slowing down sharply. The only non-manipulated economic data point out of China (electricity consumption) shows GDP growth there is HALF of the official 7.5%.

 

In Europe, Italy is back in recession for the third time since 2008. Germany’s economy contracted in the second quarter of 2014 and will likely be in recession before the first quarter of 2015. France has registered zero growth for six months now. And the US is showing anemic growth if any.

 

So we have corporate insiders selling the farm, investment legends warning of a collapse, institutional investors selling stocks, and global growth slowing rapidly.

 

And now is the time to buy stocks?

 

Take note and prepare.

 

If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.

 

You can pick up a FREE copy at:

http://www.phoenixcapitalmarketing.com/roundtwo.html

 

Best Regards

Phoenix Capital Research

 

 

 

 

 

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Wed, 11/26/2014 - 00:33 | 5489763 Chat_noir
Chat_noir's picture

graham summers/phoenix capital is everything but smart for sure

Wed, 11/26/2014 - 08:46 | 5490257 Turtle49
Turtle49's picture

The difference between the dollar and Monopoly money is better paper and printing.  The Wizards of Oz -- sometimes known as the Red Shield gang -- are a fraud and could get away with their lies before the Internet.  .

Tue, 11/25/2014 - 22:26 | 5489402 GFORCE
GFORCE's picture

This is a poor article, punted out as a cheap marketing tool for yet another cr*p guide to the next crisis, which this bozo has been trying to predict for years. Lame.

Wed, 11/26/2014 - 00:17 | 5489731 Chat_noir
Chat_noir's picture

Phoenix Capital has no shame at all. I wonder if its a robot writing all these articles.

What a waste of time to write the same crap everyday...does he really get suscribers ?

after a few weeks following their advice, any subscriber would be broke very quickly...He'd better directly sell 1 year subscription

Tue, 11/25/2014 - 22:27 | 5489396 dadcss
dadcss's picture

But the average Joe is not in the market in numbers. There is too much money still sitting on the side lines. So - expect a large correction so the MSM can tout the "it's safe to get into the water now" message. Then and only then can Joe 6 pack public sector worker bee be released from that budensome IRA/401/3K.

Tue, 11/25/2014 - 19:45 | 5488738 AdvancingTime
AdvancingTime's picture

 In addition to manipulation by the government-financial complex other forces are converging to further distort and disconnect Wall Street from the American economy. Why American equities continue to rise is very important, this is more than the continuation of a double down and let it ride mentality that has been ratcheting the market higher while reenforced by media hype.

Most analysts agree that money from countries with weakening currencies is flowing out of the troubled areas and the U.S. is receiving most of the benefit. The Japanese as well as many Chinese and Europeans know with so much money floating around and few safe harbors America is becoming the most comfortable option for temporary investing their money. More on why this should be viewed as a sign of massive instability rather than a reason to celebrate in the article below. Thing could turn ugly very fast.

http://brucewilds.blogspot.com/2014/11/why-american-equities-are-rising.html

Tue, 11/25/2014 - 23:08 | 5489544 nofluer
nofluer's picture

Thing could turn ugly very fast.

Aaayup.

Tue, 11/25/2014 - 18:52 | 5488442 Quaderratic Probing
Quaderratic Probing's picture

Smart money converting capital gains into USD. No wonder its climbing.

Tue, 11/25/2014 - 19:33 | 5488669 kenny500c
kenny500c's picture

I see large inflows from Europe and China into the U.S. as our economy is clearly outpacing theirs. This sends the $ higher. The tide has to be invested and although t-bonds are preferred much of it flows into the equity market.

Tue, 11/25/2014 - 17:52 | 5488124 mpath
mpath's picture

No stocks aren't cheap-No the SPX shouldn't be at these levels. But it is and that is all we have to know. There are some turns coming-but nothing crazy. Intermediate sentiment is not close to extremes-YET. 

Short term sentiment is at extremes and with the bearish divergences-the Grintch may show up before Santa come flying in to save the day. The high/dates were predicted weeks in advance-this top will be as well. Until then, just play the game. 

You can predict the next turn--look!!

http://www.sentimenttiming.com/times/

 

 

Thu, 11/27/2014 - 15:47 | 5494810 LithiumWarsWAKEUP
LithiumWarsWAKEUP's picture

Oh gee whiz, I 'can predict' for only $379 a Qtr? Me?

Tue, 11/25/2014 - 23:04 | 5489540 nofluer
nofluer's picture

If insiders are dumping as fast as they can, and the rise of the  "market" is slowing, and volume is down... and you have equities... you better get your hip waders out of the closet and tie a rope to something tall and secure 'cause the shitchute is starting to open and you're right in the middle of the drain channel.

Tue, 11/25/2014 - 16:40 | 5487720 rsnoble
rsnoble's picture

We've been told the smart money is selling for the last couple years.

Tue, 11/25/2014 - 21:45 | 5489260 Creepy A. Cracker
Creepy A. Cracker's picture

It's Smart Money® that has been selling, not smart money.

Tue, 11/25/2014 - 16:17 | 5487588 estebanDido
estebanDido's picture

Buy anything military, anything to do with mass graves, anything to with nuclear bombs, anything to do with f*** everything. Simple.

Tue, 11/25/2014 - 15:46 | 5487438 Comte d'herblay
Comte d'herblay's picture

If I was sitting on a twentieth of $50 Billion, I would be sitting in the jump seat of my G7  headed for the Seychelles. 

So Mr Omaha, is no harbinger of anything.  

The rest of us however, must gamble, guess, and take what appear to be crazy risks in order to make any of our money make money since Germany wants to charge me to put my money in their banks.

Nein, Danke.

Tue, 11/25/2014 - 15:42 | 5487416 traderjoe100
traderjoe100's picture

The END is near...or far...one of 'em....that's fer sure...

Tue, 11/25/2014 - 21:43 | 5489251 Creepy A. Cracker
Creepy A. Cracker's picture

Where is the end in a circle?

Tue, 11/25/2014 - 23:00 | 5489518 nofluer
nofluer's picture

Where is the end in a circle?

If you're like most people, it's right behind you.

Tue, 11/25/2014 - 15:02 | 5487242 optimator
optimator's picture

If the FED can buy equities, the FED can sell equities.  Wish I was an insider.

Tue, 11/25/2014 - 15:00 | 5487233 lasvegaspersona
lasvegaspersona's picture

All the big smart shots are preparing for a collapse in 'the market'...how many are preparing for a collapse of the currency?

The fundamental problem is in the currency but few address this issue because the answer is not in how one positions oneself in the market. 

Real preparation involves understanding the risks in the monetary system.

I have given up on trying to figure out the market. I am now content with being wrong every day about the dollar. It is a pain as being wrong every day is no fun and people say I bring them down and sound wacky. My daughter says I'm scaring the pets. Someday I expect to be right however, very, very right.

Wed, 11/26/2014 - 07:42 | 5490180 F em all but 6
F em all but 6's picture

+1000. Through insight and prep. We may not profit. But we will survive the comming shitstorm way better than the brain dead public.

 

Wed, 11/26/2014 - 07:29 | 5490159 Comte d'herblay
Comte d'herblay's picture

I'd rather be happy with a 300% gain in the S & P by year end than be right some day.

Tue, 11/25/2014 - 19:42 | 5488711 AdvancingTime
AdvancingTime's picture

I contend the dollar is crap, but the others are worse. We may be the last of the major currencies to fall because of the size of our float. Having the dollar as the world reserve currency is both a blessing and a curse. The world is currently engaged in a massive game of speculation and chance that contains a lot of risk.

Political considerations and insider deals between both nations and Central Banks play a big roll in this game. A chart I saw recently touted how the percentage of funds held by foreign governments in dollars has fallen in recent years. Even after many countries have reduced their holdings in dollar reserves the dollar still carries a major wallop and place in the world economy and will effect everyone going forward. More on how the dollars role as the reserve currency effects all of us in the article below.

http://brucewilds.blogspot.com/2014/11/reserve-currency-status-both-blessing.html

Tue, 11/25/2014 - 15:02 | 5487231 Kreditanstalt
Kreditanstalt's picture

There's no real volume...with central banks buying S&P ETFs at any price and the corporates selling, this is simply another handout to the already-wealthy at public expense....

Tue, 11/25/2014 - 15:03 | 5487254 lasvegaspersona
lasvegaspersona's picture

It is possible for the central banks to support these markets in whatever manner they please.

At this point they have begun re-writing the rules. I expect this to continue until the dollar is no longer in use. It is what they always do (ie change the rules...buying stocks is new as far as I have read.)

Tue, 11/25/2014 - 14:43 | 5487109 imapedestrian
imapedestrian's picture

Ohhhh boy...he we go again with another "deep" analysis by Graham...

I'm surprised he didn't use "folks" this time!

Oh well, just ask him to take 10 minutes slap together another hard hitting analysis and this time use at least 3 "folks" to give it that down home country appeal...c'mon Graham your losing it!

Tue, 11/25/2014 - 14:43 | 5487108 imapedestrian
imapedestrian's picture

Ohhhh boy...he we go again with another "deep" analysis by Graham...

I'm surprised he didn't use "folks" this time!

Oh well, just ask him to take 10 minutes slap together another hard hitting analysis and this time use at least 3 "folks" to give it that down home country appeal...c'mon Graham your losing it!

Wed, 11/26/2014 - 07:30 | 5490162 Comte d'herblay
Comte d'herblay's picture

....here we go again, really.

Tue, 11/25/2014 - 14:18 | 5486948 xizang777
xizang777's picture

So if everyone's been busy SELLING stocks, what are they doing with the proceeds?   Just letting it sit in a bank as cash on deposit?   I wouldn't think so.  Buying land?   Gold and silver mines?  Cruise ships?  Drone manufacturing companies?

Tue, 11/25/2014 - 22:53 | 5489494 nofluer
nofluer's picture

The article says Buffet is sitting on CASH!!! ROTFLMBO!!! This is going to be GOOD! (Bell boy in swank hotel lobby, "Mr Bail-in? Paging Mr Bail-in? NO. Wait. I'm sorry - that was Mr Buffet!"

Land is in a bubble, stocks are about to pull a 1929, cash is about to be stolen by the FED and the Mega-banks... that tin can in the back yard is looking better and better! (Too bad I don't have anything to put in it!)

If the amazing Mr Buffet is getting caught out with 50B in cash, it's looking like maybe he's not the financial wiz kid everyone's been saying he is... was.

Tue, 11/25/2014 - 13:12 | 5486520 KnuckleDragger-X
KnuckleDragger-X's picture

Thank god we have HFT's, otherwise we might have to face reality and nobody wants that do they?

Tue, 11/25/2014 - 13:15 | 5486516 TheGreatRecovery
TheGreatRecovery's picture

Good, but I personally find it annoying when people wrap up with a question.  Right?

Tue, 11/25/2014 - 12:52 | 5486395 armageddon addahere
armageddon addahere's picture

Buy low - sell high. Which are they right now?

Tue, 11/25/2014 - 14:20 | 5486953 metastar
metastar's picture

Why buy when one can Fraudclose?

Tue, 11/25/2014 - 12:47 | 5486374 sidiji
sidiji's picture

no they are selling farm land...learn to read

Tue, 11/25/2014 - 13:18 | 5486549 TheGreatRecovery
TheGreatRecovery's picture

I read it over and over but couldn't see where they are selling farm LAND.  Help!

Tue, 11/25/2014 - 12:30 | 5486259 Seasmoke
Seasmoke's picture

I thought they were buying A farm. 

Tue, 11/25/2014 - 12:53 | 5486403 Brutlstrudl
Brutlstrudl's picture

We're all buying a farm.

Tue, 11/25/2014 - 13:11 | 5486512 KnuckleDragger-X
KnuckleDragger-X's picture

In 3 foot by  6 foot by 6 foot deep increments.....

Tue, 11/25/2014 - 13:28 | 5486598 RaceToTheBottom
RaceToTheBottom's picture

Even worms need to eat, even bankster worms

Tue, 11/25/2014 - 20:13 | 5488862 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

But dead banksters won't be "pushing up daisies", they'll be pushing up parasitic plants like flytraps and pitcher plants- which means for the first time in their miserable (for us) lives they will serve a useful purpose!

Tue, 11/25/2014 - 21:24 | 5489169 roddy6667
roddy6667's picture

We could cremate banksters and put the ashes in hourglasses. Make them do something useful after they die.

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