From Investing.com: 2024-08-03 09:47:47

Warren Buffett’s Berkshire Hathaway aggressively reduced equity exposure in Q2, selling $75.5 billion in stocks. The firm sold nearly half its Apple stake, boosting cash reserves to $276.94 billion. Operating earnings for the quarter were $11.6 billion. Sales also included a cut in Bank of America holdings by 12.15%. Buffett emphasized difficulty in finding profitable investments, leading to the massive sell-off.

The stock market faced a significant decline after a weaker-than-expected jobs report, adding to investor concerns about the U.S. economy’s rapid deceleration. Economic indicators are pointing to potential troubles ahead, causing traders to see bad news as negative. Major banks are now calling for rate cuts by the Fed at upcoming meetings.

FOMC faces a challenging situation as economic data suggests a faster slowdown than anticipated. Banks like Citi and JPMorgan are pushing for rate cuts in September and November meetings. Buffett’s massive stock sell-off coincides with growing worries about economic stability. Berkshire’s actions could be seen as a sign of caution amid uncertainty about the market’s future.



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