Warren Buffett’s recent decisions to sell stocks (33B in last 3 quarters) and increase cash reserves ( to$147B), combined with Michael Burry’s options bet against the market, suggest concerns about a possible recession in the US economy. Factors such as persistent inflation, high gas prices, global instability, the AI boom, troubles in commercial real estate, upcoming student loan repayments, and shaky bank balance sheets contribute to the potential for economic instability. The video also highlights the potential negative impact of the AI bubble, commercial real estate issues, the restart of student loan debt payments, and high consumer debt levels. While mainstream economists may predict a soft landing, these investors’ perspectives offer a different outlook and emphasize the need for preparation.
Berkshire Holdings Breakdown by Stock