Warren Buffett: A 'Storm is Brewing' in the Stock Market (40% Stock Market Decline)

Warren Buffett is prepping for a staggering 55 trillion dollar storm that has been brewing in the stock market for the last 15 years. Buffett’s favorite stock market indicator is flashing alarm bells, warning that a 40% decline in the stock market could happen any day now. For background, Buffet is by far the most closely followed investor in the entire world. Every move he makes is scrutinized to the very smallest detail. However, it’s not what Buffett IS doing now that has people worried. It’s actually the opposite. As weird as it may sound, it’s what Buffett ISN’T doing that has people incredibly nervous. Make sure to stick around to the end of this video to find out how you can protect yourself from what’s ahead. Here’s what Buffett had to say at the recent Berkshire Hathaway annual shareholder’s meeting when asked why he had been selling stocks and piling up cash.

Warren Buffett is universally regarded as the greatest investor of all time. However, he has been eerily quiet as of late when it comes to buying stocks. In fact, Buffett has even been selling billions of dollars worth of Apple stock, a company just a couple years ago was considered one of his quote “forever” holdings. As a result, Buffett’s cash pile at Berkshire Hathaway has hit a staggering 189 billion dollars. Leaving many people to believe he is building up cash to prepare for an upcoming stock market crash. In gray here, we have the Berkshire Hathaway cash pile by quarter from the years 1996 to 2018. The orange line represents the price of the S&P 500 during that same time period. For reference, the S&P is an index consisting of 500 of the largest publicly traded companies listed in the United States. It is generally considered a proxy for the US stock market.

Buffett has repeatedly said in public venues that it is impossible to time the market. However, this may be an example of the old saying “do as I say, not as I do”. As we can see here, despite Buffett professing that he never tries to time the stock market, he surely does always seems to have a large amount of cash ready to buy stocks when the market crashes

[mertie-lf]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[AnnaCeline-kuys]

You will miss a lot of good opportunities to make money online if you don’t have money.

[hillaryrowland]

My strategy is buy quality stocks, expect to hold no matter what, pay up but don't over pay, keep track, sell rarely, be ready to course correct.

[Tipping-Point]

Market highs can be followed by corrections, but predicting the timing is challenging. Analysts warn of a 'massive' correction, making me consider adjusting my $2M portfolio or exploring defensive investments.

[Benjaminarmstrong]

If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life.

[auboisdaline]

AI stocks are set to dominate 2024. I prefer NVIDIA because they're well-positioned for long-term growth and support other AI companies. I know someone who made over 200% with NVIDIA. I'll also consider the other recommendations you made.

[alexanderfinlay]

A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!

[DonaldMark-nese]

These are very valuable rules for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $89k now to put in the market.

[Markscott]

Warren Buffett once said to treat investing in securities like real estate—you don't constantly check for gains. So, the recent bitcoin price drop doesn't bother me. I keep dollar-cost averaging and adding to my position, and I'm up 200% year-to-date because of this strategy.

[JamesScott]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement of about $150k. I want to know: Do I keep contributing to my portfolio in these unstable markets, or do I look into alternative sectors?

[mayalucia-]

Stocks in the short term look more likely to move downward. I Just inherited $500k which I Look forward to invest. what stocks should I look into as a newbie to safely grow my money?

[daviddempsay]

In the first video of Buffett (starting at 1:25) Buffett speaks of Charlie Munger in the present tense, but Munger died in late November of 2023. Obviously this video is using dated footage to support the notion of an imminent occurrence. While I agree that a contraction is coming fairly soon (most likely shortly after the next national election) when the title of the video specifies that it will be 40%, then you know you're dealing with clickbait. Doomsaying sure sells well, doesn't it? To the content producers at Investor Center: please tell us, how fantastic does clickbaition feel?

[thare]

The billions in "cash" are actually buying T-bills at 5.4% a return. Also mentioned at the latest meeting.

[TheGoodrog]

I feel we would have been better served if your graph of buffets cash pile vs sp500 was of his cash pile to portfolio size or brka market cap ratio

[ThomasBrackett-tpxe]

The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings to about $1M over time?

[AzeemAkbar]

A lot the listed companies have significant international exposure now, so, is the GDP of the US the correct factor for the denominator?

[patricks]

Looks like the video on Buffett has been edited. Look at the pauses.

[ge]

Going through the Transcript from the original footage, there is no "Storm is brewing" and no "40% Stock Market Decline". Going through the transcript of the video presented here a 40% decline is mentioned by InvestorCenter at 00:13:45, as a conclusion by InvestorCenter comparing the Buffet Indicator with current GDP figures respectively the current size of the US economy, which I find is reasonable to do.
At 14:55 there is the word "storm" used by InvestorCenter to promote another video by InvestorCenter with footage about how Warren Buffet sees the real estate market.
However - The title of this video: "Warren Buffett: A "Storm is Brewing" in the Stock Market (40% Stock Market Decline)" suggested to me it beeing an original quote of Warren Buffet, which seems to me now is not at all the case.
Now I can understand better why some viewers may consider this video clickbait intended.
I find this video beginning at around 11:50 instructive.

[TheSirkarl]

Of course the market is overvalued. My 78 year old father in law thinks something is seriously wrong as his retirement pension just keeps going up while prices keep skyrocketing.

[TariqSinghKhan]

I did lots of backtesting and found that 20% SCHD/DGRO, 20% VGT/QQQ/SCHG 20% VOO and 40% bonds or 4%+ money market matches the growth of SP500 in up years but reduces the losses in down years by 40-60%. I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas...