Billionaire Buffett May Repeat His Bear Market Fiascos Of 1998-2000 And 2007-2009

Founder & Chief Editor of Gold Eagle
March 28, 2015

Warren BuffettBillionaire Buffett's flagship is Berkshire Hathaway.  It is a conglomerate that invests across the US economy.  And whereas historically during normal bull markets, Berkshire Hathaway performed much better than the stock indices, when stocks reversed into a bear mode… Billionaire Buffett's flagship plunged with the herd!! 

The chart below clearly shows how Berkshire Hathaway crashed in concert with major stock indices during the 1998-2000 and 2007-2008 bear markets.  In those periods BRK/A stock value plummeted -51% in the first bear market and lost an additional -54% in the second market correction. 

If history is testament, it appears Billionaire Buffett knows “when to deal them but NOT when to fold ‘em…and know when to walk away and know when to run” (quoting Kenny Roger’s famous GAMBLER song lyrics).

Based upon the last two bear markets, Berkshire Hathaway may (again) crash -52% by sometime in 2016…unless Billionaire Buffett dumps stocks NOW and plows into all forms of gold…or goes completely to CASH.  This bears repeating (pardon the pun):  In the 1998-2000 bear market BRK/A plummeted -51%, while in the 2007-2009 crash BRK/A was hammered down a -54%. However, renowned market genius Warren Buffett is far too brilliant to allow this to happen a third time…as all major world stock indices are putting in tops.

Bank on it…as the rest of the world global markets are today in the process of crashing:

FTSE All-World Stock Index

$DJW Global Index

FTSE London Stock Index

Technical Indicator:  NYSE Percent Stocks Above 200-Day Moving Average is BEARISH:

The Price/Earnings Multiple is dangerously high, indicating stocks are way over-valued.

And then there’s the January Effect:

A down January is a bad omen for the stock market. Yale Hirsch of the The Stock Traders Almanac suggests that since 1950, every down January in the S&P500 preceded a new or extended bear market, or in some cases, a flat market. They go on to further suggest that down Januarys are followed by substantial declines averaging -13%.  To be sure New York stocks fell about January 2015. Literally, the writing is on the Wall (street).

bull marketIndubitably, today’s Bull Market is very tired and already too long in the tooth

The average stocks’ bull market since 1929 rose 104% during a period of 31 months. However, the present stocks’ bull market has already soared 180% during the past 70 months (since early 2009). Needless to say. This bull is decidedly long in the tooth (i.e. way overdue for a material correction)…ergo a roaring BEAR MARKET IN STOCKS LOOMS ON THE HORIZON.


Related Articles:

World Stocks Crash Prediction

Stock Bears Are Preparing To Run Amok…Worldwide

Global Stock Markets Are Due For A Tumble

Cash Is King Stocks Forecast

Ominous Signs For Stocks Forecast Lower Prices

Stock Market Forecast By Market Cap/GNP Ratio

Basic Truths And Consequences

Warren Buffett Predicting Upcoming Stock Market Crash

Why the Next Stock Market Crash Will Happen Any Day Now

Founder of Gold-Eagle in January 1997.  Vronsky has over 42 years’ experience in the international investment world, having cut his financial teeth in Wall Street as a financial analyst with White Weld. Vronsky speaks three languages with indifference: English, Spanish and Brazilian Portuguese.  His education includes a degree in Petroleum Engineering from the University of Oklahoma, a Liberal Arts degree from Hartnell College and a MBA in International Business Administration from UCLA – qualifying as Phi Beta Kappa and Tau Beta Pi for high scholastic achievements.  Vronsky believes gold and silver will be recognized as legal tender in all 50 US states and many countries worldwide.  You may reach I. M Vronsky at: [email protected] and/or [email protected]

The term “carat” comes from “carob seed,” which was standard for weighing small quantities in the Middle East.
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