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<blockquote data-quote="Babagounj" data-source="post: 5774434" data-attributes="member: 12952">[URL unfurl=&quot;true&quot;]https://www.newsweek.com/warren-buffet-selling-28-7-billion-stock-rings-alarm-bells-over-economy-1851270[/URL]As Buffett is considered one of the greatest investors of all time, as well as one of America&#039;s richest men, his moves are closely observed and analyzed.&quot;The money supply of the United States, broadly measured [M2], started contracting in July 2022, and has been falling like a stone,&quot; Hanke said. &quot;Since last year, the U.S. money supply has contracted by 3.3 percent.&quot;According to Hanke, there have been only four periods in U.S. history—in 1920-21, 1929-33, 1937-38 and 1948-49—in which the money supply has had significant contractions.&quot;Each of those four episodes was followed by a serious recession,&quot; he said. &quot;The current monetary contraction is clearly going to lead to precisely what monetary contractions always lead to: a recession.&quot;David Wagner, portfolio manager at <a href="https://aptuscapitaladvisors.com/" target="_blank">Aptus Capital Advisors</a>, told Newsweek that Buffett is likely holding on to more cash because insurance costs have increased, and &quot;historically, Buffett has stated that his company likes to hold cash on its balance sheet to cover potential insurance losses.&quot;The billionaire might also be keeping cash on hand &quot;for optionality if there is market weakness,&quot; Wagner said.&quot;And right now, cash is earning a relatively healthy nominal return. If the market were to take a fall, he&#039;ll be ready to buy when valuations are lower, much like what he did in 2008.&quot;</blockquote>

[QUOTE="Babagounj, post: 5774434, member: 12952"] [URL unfurl="true"]https://www.newsweek.com/warren-buffet-selling-28-7-billion-stock-rings-alarm-bells-over-economy-1851270[/URL] As Buffett is considered one of the greatest investors of all time, as well as one of America's richest men, his moves are closely observed and analyzed. "The money supply of the United States, broadly measured [M2], started contracting in July 2022, and has been falling like a stone," Hanke said. "Since last year, the U.S. money supply has contracted by 3.3 percent." According to Hanke, there have been only four periods in U.S. history—in 1920-21, 1929-33, 1937-38 and 1948-49—in which the money supply has had significant contractions. "Each of those four episodes was followed by a serious recession," he said. "The current monetary contraction is clearly going to lead to precisely what monetary contractions always lead to: a recession." David Wagner, portfolio manager at [URL='https://aptuscapitaladvisors.com/']Aptus Capital Advisors[/URL], told [I]Newsweek[/I] that Buffett is likely holding on to more cash because insurance costs have increased, and "historically, Buffett has stated that his company likes to hold cash on its balance sheet to cover potential insurance losses." The billionaire might also be keeping cash on hand "for optionality if there is market weakness," Wagner said. "And right now, cash is earning a relatively healthy nominal return. If the market were to take a fall, he'll be ready to buy when valuations are lower, much like what he did in 2008." [/QUOTE]

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