When people with a lot of investments, who are not otherwise facing some immediate cost… literally cash them out, and hold cash, as Buffet has done /is doing…
That means he is betting the losses from inflation will be less than the losses from those other investments tanking.
That means Buffet is roughly predicting something like a -2 or -3 % (or worse) Q1 25 GDP ‘growth’… ie, general economic decline.
So he basically said “this shit ain’t right” and chose to pull out money from stocks even though cash loses value to inflation if sat idle?
You got it.
When people with a lot of investments, who are not otherwise facing some immediate cost… literally cash them out, and hold cash, as Buffet has done /is doing…
That means he is betting the losses from inflation will be less than the losses from those other investments tanking.
That means Buffet is roughly predicting something like a -2 or -3 % (or worse) Q1 25 GDP ‘growth’… ie, general economic decline.