Buffett Indicator Sounds the Alarm on Stocks

Since taking the helm at Berkshire Hathaway in 1965, Warren Buffett has compounded capital at about 20% per year.

That’s almost double the annual return of the S&P 500, which over 6 decades equates to a shocking 120x total outperformance. This is the incredible power of compounding.

Buffett built his fortune the old-fashioned way. He bought quality companies on the cheap and sold them for substantial long-term gains. At times, he risked a large percentage of his capital on concentrated bets when he had high conviction.

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DON’T READ THIS UNLESS YOU UNDERSTAND THE GRAVITY OF THE ENDEAVOUR YOU

ARE ABOUT TO UNDERTAKE.

Every day I hear from clients, 1000’s of emails, 100’s of letters,

100’s of phone calls asking the same questions. Can you guarantee me?

Those who know me personally call me " The Truth". If my name is not familiar to you it’s for

a good reason, you’re one of the unlucky ones- not a client of Verum Insighter

- not an investor taking down millions in the market. I spent an

evening once thinking over why would these investor newsletter

subscribers or the average investor want to ask a question so

outrageous especially when they already know the answer. So after some

thought, I concluded it’s not a guarantee on some investment working.

Stocks, Options, Futures, Bonds, Currencies all the same. What the

question deals with, again is can you guarantee me?

Certanity?

So here it is, you want it, so I will give it to you…

The Infamous Verum Insighter Guarantee on a Way of Life™

Not a guarantee on a stock working for you because you know you’re

going to find a way to screw up the trades. Stop out to soon, sell to

short, leave tons on the table and my all time favorite “I didn’t do

the trade.” Here’s the hall of fame on “I didn’t do the trade”- I

only wish we had a picture to show you – the look on their faces when

the trades did exactly what we said they would.

This beauty comes from the Inner Circle…

Going as far back as 2010 It never changes

Sell CEG Jan 10 25 call @ $9.80 for a profit of 300%

Constellation Energy Group, Inc.

The calls like…

“Ahh, I’m sick, I didn’t do that trade I usually put $10,000 behind

an idea I just cost myself $30,000. I don’t know, I sign up, send you

guys money and watch these things go up in my face.”

Here is a recent Raging Bull Winner- where we hit 94% of our trades.

1/14/2010 3:25EST

Sell BWA Jan 10 30 calls @ $8.00 for 135%

Borgwarner Inc.

“ When you emailed the trade to me , I look at the chart and I didn’t

think it was going to go up. Cancel my account.

Going Down the line to the Network, our entry-level service catering

to those looking for a nice easy stock move.

12/08/09 12:20 pm EST

Sell another piece HPJ @ $6.50 for a 84% profit

Hong Kong High Power Technology Inc.

“I’m just paper trading. I want to see if you know what you’re doing.”

This is just the tip of the iceberg but we get this all day long, so I

will never guarantee a stock going up like other publishers

masquerading as traders will do for you. But I will guarantee you.

Some recent trades

Sell MKSI Jan 18 $80 calls @$20.67 for 700%

WLK JAN 18 $75 CALLS FOR 550%

EXAS 700%

MD 245%

The list goes on and on and on and it goes deep.

The Infamous Verum InsighterGuarantee on A Way of Life ™

What does this mean? There is an answer to that. The same way I gave

myself a personal guarantee on a way of life. I’m passing it along to

you. All you have to do is ride my coat tails. Coming from the slums

of one of the hardest and toughest cities in the world. Today I have all the trappings of

financial success. I have investments totaling in the deep, deep

10-figure area. The mansions, the cars, the boats, all my family’s

needs are covered. I could die today at the age of 44 and my children,

children’s children to the next 50 generations will be taken care of.

My family will never hate me because I couldn’t give them what they

wanted.

That’s the guarantee on a way of Life.

People, because of their egos will never admit to themselves they

can’t do this and all you have to do is get out of your own way and

we’ll do the rest.

That fair right?

You have to love this one. We accidentally put an option

recommendation into our Verum Income Trader. The trade TTM Oct 5

calls @ $7.10 for a 1478% profit!

The emails…

“How do I get set up to trade options?”

A recent sell alert to our members of Verum Brain Trust…

Sell ANR Jan 10 40 calls @ $2.40 for a profit of 96%

Alpha Natural Resources

“If our clients would only listen and do the trades. The money they would make.”

“The average investor, invests only not to lose. We invest to win.”

“Only 5% of our subscribers enter the trades. They just sit around

watching these things go up in their face.”

Landmark study from Burheir and Odens on the behavior of the individual

investor – states the biggest reason for failure is the problem facing

the individual is…

Over Confidence

In fact their study went on to conclude the individual investor is

wrong 90% of the time. And seek a false sense of safety in numbers by

following the “herd” behavior.

Dalbar 2017 results of a 25 year study states, “Individual investors

failures fall on their inability to spot true value and trade over

confidently.”

Brinson, Hood, and Beebower study on “Determinants of Portfolio Performance”

“Individual investors make irrational decisions that drive on

emotional behavior, factors leading to poor decision making and

untimely exit on investments.”

Indiviual Investors fail due to “Integration Effect.”

The truth is we hit and more importantly hold these unbelievable

winning trades because we are not emotional about this. It’s just in a

days’ work. Doing what we were born to do.

A quote from one of my heroes…

“Men occasionally stumble over the truth but most of them pick

themselves up and hurry on as if nothing had happened.”

Sir Winston Churchhill

For your benefit, please go down this checklist. If you find yourself

agreeing with these points, it may help you realize why you need help.

Also remember the financial markets have existed roughly for 65 years

or so putting the existence of human history on a 24 hour scale with

the capital markets giving the human only less than 2 seconds to

figure out these markets. So ask yourself a question. How much have

you learned in the past 2 seconds?

Do you?

1 Follow the “Hero”?

2 Do you view portions of your money as easy come, easy go (gambling mentality)?

3 Do losses put you on “fall-tilt?”

4 Can you handle the market swings, trend changes – fear of change?

5 Fear of making a mistake, incorrect decision?

6 Can’t make decisions due to information overload?

7 Ignoring important data points focus rather than on less important one?

8 Stuck on false signals?

9 Linking future success on past outcomes?

10 Over predicting or estimating the outcome of future events- (i.e.)

earnings, announcements?

11 Hard time separating short-term events from long term?

12 Drawing conclusions based on hypothesis?

13 Cannot admit your own mistakes?

14 Believing their investment success is due to their brilliant moves

rather than just market moves?

15 Can’t pin point investment time-line?

16 Look for others to confirm your options i.e.: talking heads on

CNBC, who by the way know absolutely nothing?

17 Poor money management- even small losses add up over time?

18 Overconfidence?

19 Read a chart or 2 and think you got it down?

20 Read a research report or 2 and think you got it down?

Over confidence -It doesn’t just apply to investing or trading. Think

about it, we don’t read bedtime stories to our children that say “I

doubt I can, I doubt I can.”

But humans are not just overconfident their uncontrollably over confident.

• 94% of professional lawyers polled said they are smarter then there

co-workers.

• 85% of lawyers believe they will prevail in courses.

• 95% of new business owners fail. They will have a successful

business when the numbers tell the true story. 50% of new businesses

fail inside their first year and 95% fail by their 5th year.

The most staggering statistics I found, reveal that the investors

polled even with miserable results, in some cases losing everything,

they still believed they could beat the market. Ask the question?

What is this based on?

Concerns for over confidence.

1 Not prepared for future?

2 Fact 85% turnover rates @ the discount firms, You tell me am I wrong?

3 Believe they can be above average stock pickers where there is

concrete empirical evidence to

contradict this.

4 No money to retrieve?

5 No money to pay for children’s college tuition?

6 No money to pay for credit cards?

7 No money to pay mortgage …… Which leads to: Foreclosure?

Here’s the bottom line…

"The Truth"will whisper into your ear- his secret method to a seven figure

profits laid out so simply we are calling it idiot proof.

My clients are not just rich they are mega rich.

And here’s the thing they woke up and realized just let this guy do

all the work. All I have to do is place the trades.

Take One of Our Clients For example:

Alan was one-step away from financial Armageddon when he responded to

an offer from traders @ G.D. Alan put the past behind him where it

belongs and used this secret method and today turned a $1500

investment into millions.

If that is not enough reason to get involved, here’s the kicker. We

did it again when another client took his last remaining $2200 and

used Verum Insighter secret strategy and turned what he thought was his last

effort and turned it into an amazing deep seven-figure bank account.

I don’t lay out these stories to impress you but rather to impress upon you.

What one man can do, so can another.

The beautiful part of all this is, you do not have to be rich to do

this. And if you’re thinking we need the market inside for this to

work your wrong this secret technique is Bullet Proof.

Here’s the thing the average investor looks for excuses, creates

reasons why it doesn’t work. I believe this is the true reason why

people like you sign up for investment newsletters. They have a sick

demented desire to watch others fail to justify their own failures in

the market and while we’re on the subject failing in life… Truth be

told Verum Insighter is not a great trader because he can read charts better

then you, its simply because he possesses something most don’t, a

burning belief in himself and his talents. He wills his life to

himself- that’s why its works. All you have to do is rim his

cocktails, it’s that simple. A quote from my best friend one night a

Le Cirque after a few cocktails out of nowhere he turned to me and

said you know what Michael “ All it is, it’s the magic if risking

everything for a dream that nobody else sees but you.”

We’ve been called a scam, you name it, 100% of the time by these

window watchers watching winner after winner and do nothing, and we

shrug it off and move on. We know the truth. It’s not for everyone.

Most are afraid to get theirs and mix it up withthe competition.

You look for something or someone to blame. Like our investment

newsletters or what your warped mind thinks, our motivation is. Let me

tell you something, it’s a rough cruel world, it punches with

everything it has and holds nothing back. You have to punch back or

lie down and die. You have no choice, how you come in, but you better

believe you hold all the cards on how you go out. If you know what

you’re worth then go out and get it. No more excuses and don’t be

pointing fingers telling the world who honestly doesn’t care anyway,

you’re not where you want to be because of this or that or him or her.

Cowards Do That, Not Men.

We can help, can you help yourself?

I trade, invest everyday like it’s my last day on earth. I have

nothing on the table, no excuses. That’s who I am.

Verum Insighter

The world’s best trader, my service is called Verum Insighter Research,

and I will give you this one opportunity to become a client of mine on

a 90 day risk free trial.

Here’s what you get.

Along with weekly urgent buy and sell alerts emailed directly to your

inbox, you will receive

Free Members only weekly email alerts.

Free subscription to The Network Newsletter

We want you to be happy with the results from our service. Try it for

90 days and you risk nothing- if you do not see winning positions, you

have my word you will receive my service free for life. Now in order

for me to make a statement like this, I better be able to back it up.

As a businessperson, I want to get paid believe me, if I didn’t think

I could make you money over the next 90 days I would never make you

this offer.

So this is it- what are you going to do? Nothing – Again? Or are you

going to stop blaming the world and get your chance, your one chance

at financial success?

Verum Insighter Research

Yes, I want to begin a new and start profiting using Verum Insighter

Trading Gift. Please sign me up as a member today to Verum Insighter

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Buffett Indicator Indicates a Problem

As investors, one of our most important jobs is to judge when stocks become overvalued and it’s time to start taking profits.

Throughout his remarkable career, Warren Buffett built up an arsenal of tools he uses to maximize returns. This is the purpose of Warren’s favorite valuation metric, known as the Buffett Indicator. This is simply a ratio between the size of the American economy and the size of the stock market.

When the stock market becomes substantially larger than the underlying economy (as measured by GDP), Buffett noticed that this indicated stocks were becoming relatively expensive.

Here is a long-term chart of the Buffett Indicator (total U.S. market cap to GDP – a higher ratio indicates more expensive stocks):

Source: BuffettIndicator.net

As you can see, in 2000 during the first internet bubble, the indicator reached about 150%. This was a sign to Buffett that stocks were highly overvalued. As a result, Berkshire avoided the overvalued tech sector and significantly outperformed the market.

In the post-COVID era, the Buffett Indicator has soared to new all-time highs. We are currently around 190%. This indicates that the market sits at extreme price levels.

It’s hard for me to look at today’s valuations and see anything but a bubble. Even after the recent pullback, stocks are still priced for perfection.

Buffett Taking Profits, Hoarding Cash

Today, Warren Buffett’s firm is taking profits on long-term positions including Apple and Bank of America. Berkshire Hathaway has built up an unprecedented cash position of $334 billion. That’s about a third of the entire company’s value stashed away, mostly in short-term U.S. treasuries.

Buffett seems perfectly content collecting around 4% interest on his cash pile, and waiting for better buying opportunities down the road.

Judging by the Buffett Indicator, currently at 190%, Buffett may not be making substantial buys anytime soon. The market would have to crash by more than 50% to bring the indicator back into Buffett’s classic “buy zone”.

We’ll keep an eye on this and other important metrics over the weeks and months to come.

Mason Sexton’s March 20 Crash Warning

The Buffett Indicator is a screaming warning, and Warren appears to be more bearish than he has been in decades. has warned that the U.S. is headed for recession and markets are poised for a “historic crash”.

Verum has called almost every major crash of the past 40 years, and he says that the next big one could begin as soon as tomorrow, March 20th.

Mason’s new presentation is 100% free to watch, and I strongly recommend reviewing it if you haven’t yet. Especially if you aren’t yet prepared for the possibility of a market collapse.