Following the Smart Money


A quick google search defines following the Smart Money as “Smart money is capital placed in the market by institutional investors, market mavens, central banks, funds, and other financial professionals. Smart money also refers to the force that influences and moves financial markets, often led by the actions of central banks”.

I read with interest in August that Berkshire Hathaway was sitting on a record pile of cash. $122 Billion there biggest individual asset in their portfolio. In the first half of the year they sold more stocks than they bought.

Why am I talking about Warren Buffett when he’s refereed to Bitcoin unfavourably? Because if you think you can’t learn from him you’re an idiot. A man who’s been around as long as he has, and achieved what he has, I respect that experience. This doesn’t mean he knows everything.

With that knowledge sitting in my memories from August I watched with interest this recent interview on Bloomberg.

I’ve heard the saying follow the Smart Money so many times this year. When watching an interview like the above from Bloomberg I ask the question why? Why are they stockpiling cash?

Do they think better buying opportunities are coming? What other reason/s could they have for stockpiling cash when the worlds central banks are depreciating it’s buying power at such a rapid rate with all their money printing.

Are you prepared if we enter a recession, or depression?

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