I’ve been watching a lot of YouTube videos recently about billionaires sellling their stocks. Some are presumably holding cash or investing it in instruments other than market securities or buying stocks of stable companies which are companies that might not be economically affected too much by inflation. The people making these videos are saying that the billionaires are making these moves because the billionaires think that inflation is going to happen in the near future (I’m guessing by near future time frame means somewhere between 6 months or even earlier to 3 years). One Billionaire (Ray Dalio) is saying that soon the economic conditions become like the economic conditions of 1930s.
Some videos for reference:
- Money, Monetary Policy, and Bitcoin | Ray Dalio at Consensus 2021 - YouTube
- Bill Gates Is Selling Out Of Tech Stocks & The Reasons Behind It Are Frightening - YouTube
- Bill Ackman Predicts Financial Crisis. This is his Stock Portfolio NOW - YouTube
- Billionaire Investors Predict Financial Crisis. This is Their Stock Portfolio NOW - YouTube
- Michael Burry Predicts Another Market Crash. This is His Stock Portfolio Now - YouTube
Does this make sense? What do I need to learn to judge this idea about inflation? According to my current understanding I think that inflation will indeed happen because of Biden’s economic policies and increasing debt and printing of money.