{Wall Street WARNING} Warren Buffett Just Sent the Markets a $25B Message

The markets need to this, so that the budding bull can proceed to the next leg up! Find out inside! Sponsored [How He Bagged One Of The Top Trading Records…]( A reclusive millionaire has been quietly racking up winning trade after winning trade. Despite avoiding most headlines, he’s become one of the most successful traders around - over the last 8 years, he’s banked a 97% win rate. How does he do it? He sat down for a rare interview where he revealed it all. [Click HERE to see how he’s done it…]( [Privacy Policy/Disclosures](  Warren Buffett's $25 Billion Message to Wall Street [Image]  Hello Stock Traders  You might wonder why so many people gather in Omaha every year just to hear Mr. Buffett talk about the economy, innovations, and the stock market. Well, since he became CEO of Berkshire Hathaway in 1965, he's turned the company's Class A shares (BRK.A) into a golden goose with an aggregate return of 3,787,464% as of Dec. 31, 2022. To put that into perspective, the S&P 500 (^GSPC 0.45%) only delivered a 24,708% return over the same period – and that includes dividend payouts! Investors eagerly await Berkshire Hathaway's annual shareholder meeting and quarterly earnings reports like kids on Christmas morning, hoping for some guidance on where stocks are headed next. Unfortunately, the Oracle of Omaha might be leaving a lump of coal in their stockings with the past two quarterly reports. The silent warning Warren Buffett seems to be sending to Wall Street is not something to ignore. Sure, Berkshire Hathaway's fourth-quarter and first-quarter operating results look pretty normal in terms of revenue and profit. But if you do some financial archaeology and dig through the cash-flow statements, you'll find the real treasure: cash flows from investing activities. For years, Berkshire Hathaway has been sitting on a mountain of cash, like Smaug from The Hobbit. When they invest that money into stocks, investors see it as a vote of confidence from Warren and his investment wizards, Ted Weschler and Todd Combs. But when they sell more equity securities than they buy in a given quarter, it's like a storm cloud on the horizon. Even though the stock market has been going through a rough patch recently, stocks still aren't cheap. Buffett's mantra is to "buy a wonderful company at a fair price," but even with all three major U.S. stock indexes falling into a bear market in 2022, equities are still relatively pricey. Just look at the S&P 500 Shiller P/E ratio – it's like a thermometer for stock prices, and right now, it's running a fever. Historically, the Shiller P/E ratio has averaged 17.02, but as of the closing bell on May 5, 2023, it stood at 29.14. That's way above the norm, and it might be because of cheap capital and easy access to information. And when that ratio goes above 30, it's like a warning siren – in the past, the S&P 500 has lost at least 20% of its value in similar situations. Apple (AAPL 1.04%), Berkshire Hathaway's largest investment holding, is another example of stocks not being cheap. Even though inflation is giving it a little boost, the tech giant is expecting sales and profits to decline in 2023. But despite the lack of growth, Apple's stock still demands a high P/E ratio, based on Wall Street's fiscal 2023 consensus, of 29. Just to jog your memory, Apple's shares traded at an earnings multiple of between 10 and 15 from 2013 to 2018. Buffett's $25 billion silent warning could be a signal of stormy days ahead for stocks. Now, before you panic, let's remember that the Oracle of Omaha isn't infallible. He's made some mistakes in the past, like selling Walt Disney too soon and making some not-so-great decisions with airlines and Wells Fargo. He's human, just like the rest of us. The real key to Buffett's success is his long-term mindset. Yes, the cash-flow statements might hint at some skepticism about current stock valuations, but Warren knows that patience is a virtue. The S&P 500 has had its ups and downs, but every downturn has eventually been followed by a bull market rally. Buffett understands that market slumps and economic hiccups tend to be short-lived, which is why he's positioned Berkshire Hathaway's portfolio to take advantage of long economic expansions and bull markets. Timing the market isn't his thing; time in the market is. So while Buffett's recent lack of buying might spell trouble for Wall Street in the short run, history shows that any significant downturn would be like rolling out the red carpet for patient investors to put their money to work in "wonderful companies at a fair price." Just remember to keep calm and invest on!  Trade safe!  -James  Coming Up Next: The S&P 500 can't seem to catch a lift above 4,000. What could be missing? Find out in the article below!   SPONSORED 🔽 Sponsored [This Trade Has Paid Out 99.1%]( We’ve made THIS simple trade over and over again… for years. The result? It’s cashed in winning trades 99.1% of the time. We call it the “310F Trade.” Getting into this “rinse and repeat” trade each Tuesday… could double your money by Friday. Sound too good to be true?[See how we’ve done it, week after week...for YEARS]( [Privacy Policy/Disclosures]( Unleashing the Bulls: What Might Propel Stocks Beyond the Trading Range Whew, talk about body blows! We've seen banks go kaboom, recession fears on the rise, and inflation higher than a hot air balloon. Manufacturing is weak, job openings have shrunk, and corporate earnings have taken a nosedive. So much doom and gloom, right? But in the midst of all this, the S&P 500 ETF (SPY) has managed to climb up by 8% since March's low. Not bad, considering the bearish atmosphere and those massive bank failures! I have to admit, the S&P 500's resilience in the face of adversity is quite something. However, it's not all sunshine and rainbows. The rally is mainly due to big money flowing into giants like Apple (AAPL), instead of a mad rush to buy everything in sight. For instance, the Russell 2000 ETF (IWM) and ValueLine's Geometric Index VALUG have been stuck in the mud since March 10th, waiting for a sign. Now, let's talk dollars and cents. The dollar's direction could either give stocks a boost or send them tumbling down. Dollar strength was a major buzzkill for stocks in 2022, but it bottomed out when the dollar peaked last fall. It's a love-hate relationship, you see: a strong dollar cuts demand for US companies abroad and messes with financial results. But when the dollar weakens, it's party time for stocks! Garner believes a weaker dollar will benefit most US assets, and if they're right, stocks might finally break out. Cue the short sellers rushing in with buy orders, potentially fueling a summer rally! But hold your horses, what could actually move the Dollar? Enter the global economy. High inflation can make a currency feel like it's on a diet, while increasing interest rates gives it some muscle. Since currencies depend on people's expectations for growth, inflation, and interest rate policies, they're always on a rollercoaster ride. For example, Russia's invasion of Ukraine skyrocketed food and energy prices in the EU, but the European Central Bank (ECB) has been slow to react compared to the US. So now, the ECB is playing catch-up, and foreign central banks might have more work to do. Surprisingly, or not, foreign currencies have managed to recover some ground against the dollar. Invesco's CurrencyShares Euro Trust ETF (FXE) is up 14.6% since last September, and Invesco's Yen Trust ETF (FXY) is up 11.4% since October. However, not everyone is convinced the weaker dollar trend will keep up. Helene Meisler from Top Stocks thinks the dollar is set to move up, not down. So, what's the smart play here? If the US economy keeps weakening, the Fed might not have any more room to increase rates. Plus, if a recession looms, they might even cut rates, which could send the Dollar Index ETF (UUP) downhill. Investors should also keep an eye on the 10-year Treasury yield. It's been a bit all over the place lately, currently sitting at 3.45%. If it dips below 3.28%, the odds of the S&P 500 breaking out could improve, especially if the dollar drops. While the markets might be crazy at the moment, there's still hope for the markets. Just keep an eye on the global economy, interest rates, and the dollar's movements. It's like a game of chess, where every move matters, and the stakes are high. So, while we may not have all the answers, it's essential to stay informed, make smart decisions, and keep a sense of humor in the face of uncertainty. After all, even in the darkest of times, there's always a silver lining (or at least a good punchline).  Disclaimer:  The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit tradersontrend.com/terms for our full Terms and Conditions.  COE MEDIA.   1126 S Federal Hwy Unit #827   Fort Lauderdale, FL 33316 [UnsubscribeÂ](  [Privacy Policy](