Bill Gross And Warren Buffett Hint At Bearish Stock Market Future

Renowned investors Bill Gross and Warren Buffett have been hinting at a less favorable outlook for the stock market, causing a stir among investors and analysts alike.

What Happened: Gross, popularly known as the “Bond King,” suggested a dearth of “bull stocks” in a recent post. He advised investors to consider “selling recoveries” instead of “buying the dip.”

This sentiment was shared just before the stock market experienced a dip due to weak payroll data on Friday morning, reports Fortune.

Meanwhile, Warren Buffett, the “Oracle of Omaha,” also signaled a bearish stance. The Q2 earnings report of Berkshire Hathaway BRK revealed that Buffett’s conglomerate sold a net $75.5 billion worth of stock, including a significant reduction in its stake in Apple Inc. AAPL.

Analyst Jim Shanahan from Edward Jones interpreted this as a potential “sell signal.” Shanahan said, "You could conclude this is another sell signal. This was a far higher level of selling activity than we were expecting.”

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Buffett’s aggressive stock selling spree, which included the sale of nearly $4 billion in Bank of America shares, has continued into the third quarter.

CFRA Research analyst Cathy Seifert suggested that this could be a strategic move in anticipation of a “weaker economic climate.”

Why It Matters: The bearish sentiments expressed by Gross and Buffett are significant given their influence in the investment world.

Their less optimistic view of the stock market could potentially impact investor sentiment and market trends.

However, it’s worth noting that not all Wall Street analysts share this pessimistic outlook. Jay Hatfield, CEO at Infrastructure Capital Advisors, maintains a 6,000 price target on the S&P 500, predicting a rally towards the end of the year.

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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.