Stock market CRASH: What does Warren Buffett know that we don't??



Americans woke up on Monday morning to a stock market plunge after a bad day on Friday. The Dow plummeted hundreds of points, Warren Buffett is selling stocks like crazy, and to top it all off, Japan’s stock market had its worst day since 1987’s Black Monday.

Glenn Beck is understandably worried.

“Friday, we had a bad jobs report. We’re still not in a recession; indicators are showing that we’re headed towards one, but the indicators have been wrong before. We are headed towards one; we’re headed for a depression at some point,” Glenn Beck warns.

Glenn is concerned about what this might mean for ordinary Americans and the United States economy and consults financial expert Carol Roth for some advice.

Roth explains that while the Fed did not lower rates, it might be on the table in September.

“Normally, you would say, ‘Okay, the market wants the Fed to cut rates,’ but what happened is then we got a weak job report on Friday, and while sometimes the bad news can be good news for the market, in this case, they took it as bad news,” Roth tells Glenn.

“The Fed was behind the curve in terms of lowering rates,” Roth continues. “They felt like maybe this whole idea of a quote ‘soft landing,’ the idea that you can get the inflation down without wrecking the economy, is off the table.”

However, while it doesn’t look good, Roth says that “if there is any silver lining here,” it’s that the market did not open back up and continue to fall.

But there are still major indicators that something strange is going on, and one of them is Warren Buffett’s recent behavior.

“Another catalyst that we’ve seen is Warren Buffett,” Roth says. “He had lessened his position in Apple by about 49%.”

“That’s not lessening. That’s cutting it in half,” Glenn says. “He’s making some of the biggest sales he’s ever made. It’s almost as if he’s becoming bullish on America. What does he know that we don’t know?”

“Starting in 2019, he doubled down on Japan. So he has five really big companies and really big positions in Japan. So the day that we’re talking about Japan going down and at the same time the U.S. is going down,” Roth says. “It is interesting.”


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Carol Roth explains Wall Street crash: 'We can still take some comfort'



Yesterday saw a massive plunge in the Dow Jones and Nasdaq indexes, sparking a global selling frenzy and leading Americans to ask the dreaded question: Is the United States headed into a recession?

Recovering investment banker and author of “You Will Own Nothing,” Carol Roth joins Jill Savage and the “Blaze News Tonight” panel to shed light on the situation.

'Fears of Recession': Trump Blames Bidenomics for the Wall Street CRASH | 8/5/2024youtu.be

According to Roth, what is commonly referred to as the "Magnificent Seven” stocks – Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, META, and Tesla – “have really been carrying the stock market for the last couple of years, gaining incredible amounts of value at least on paper.”

Then, “Over the past few weeks, there started to be some cracks, I think, that investors realized — that their valuations had gotten a little bit frothy [and] that companies were going to actually have to spend a ton of money in order for their AI dreams to come true,” says Roth, “so we started to see a pullback on that.”

Then the “pullback” Roth mentions was “accelerated ... last Wednesday when the Federal Reserve Chairman Jerome Powell said that he wasn't planning to cut rates at this particular meeting, although still leaving on the table of September as a cut.”

“Then Friday came along, and we got a really ugly jobs report, so that triggered a recessionary indicator,” she explains, adding that there were also “some concerns that maybe the economy wasn't as strong as the Fed had been projecting and that they may be behind the curve when it comes to cutting rates.”

“So already we were seeing trillions of value being lost from the stock market because of this. Then we have the Middle East escalation over the weekend, and then we have Japan,” Roth tells Jill.

“In Japan, they have sort of the opposite situation happening that we have here. They had their rates at a negative level or zero for about 17 years, and finally they decided about four months ago they're going to try to normalize,” says Roth. “This Wednesday they decided to hike their rates and that created some issues and some strength with the yen and in doing so created ... sort of an unwinding of various trades that ended up creating a contagion that spilled over into the U.S. market.”

“Fortunately, our contagion, even though it was not a pretty day, was not nearly as bad [as Japan], and the good news is that this is really a breather in the market.”

“You still have the Nasdaq up about 29% for the last 52 weeks, the S&P 500 up about 26%, so while it is an ugly day, and we do need to take in sort of the totality of what's going on, we can still take some comfort that we were able to only have a few percentage points lost in terms of the contagion.”

“Mysteriously this morning, millions of people weren't able to trade at all. ... Are we normalizing this? What is going on here?” asks Blaze Media’s editor in chief Matthew Peterson.

To see Roth’s answer, watch the episode above.

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Stock market crashes in worst day since pandemic over fears of a recession



The stock market crashed in the worst day since the pandemic outbreak in 2020 over fears that the economy was heading into a recession after several companies reported weak earnings.

The Dow Jones industrial average lost 1,136 points, or 3.5%, while the S&P 500 dropped by 4% and the Nasdaq composite fell by 4.6%.

Wednesday's losses added to investors' woes over a month of declining values.

Quincy Krosby, chief equity strategist at LPL Financial, explained that earnings from retail companies set off the market collapse.

“Today’s broad-based market selloff concerns the ability of companies to pass along higher costs, something that was questioned but which found somewhat of an answer with the retailer’s earnings reports,” wrote Krosby.

“To be sure, consumers continue to spend, but many of the top retailers are unable to pass along the higher labor costs and higher prices wrought by a still constrained supply chain," he added.

Among those were Target, which reported lower earnings despite having an increase of sales because inflation had made its expenses grow at a larger rate. Target's stock dropped by more than a quarter as a result.

"Higher costs coupled with more cautious consumers have the market worrying about the prospect of a recession," Krosby added.

The market also appeared to respond to comments from Federal Reserve Chairman Jerome Powell on Tuesday that the Fed was willing to hike up interest rates even more in order to battle inflation.

On Monday, a Morgan Stanley analysis said that the "excessive" fiscal stimulus spending from the Biden administration was to blame for "turbocharged" consumption and surging inflation.

"In other words, we created too much demand for the supply chains to handle. The fact that the supply chains had been impaired to some degree only exacerbated the shortages and inflation, especially for consumer goods," the analysis read.

Voters said in a recent poll that they blame Biden's policies for inflation more than any other cause, including the invasion of Ukraine, the pandemic, and supposed corporate greed.

Here's more about the stock market crash:

Retailer Target's woes renews inflation fearswww.youtube.com