According to a new SEC filing, Buffett is sitting on $55 billion in cash through his company Berkshire Hathaway. This is highly unusual behavior from a man often called "the worldâ€™s greatest investor." Itâ€™s the biggest cash hoard the company has ever amassed, in the 40 years heâ€™s been in charge.
At a cost of $29 million every single day he keeps his money out of the markets, from all outward appearances, this is a risky and costly gamble. Unless Buffett is sure a Wall Street crash is at our doorstep.
But heâ€™s not the only famous investor who fears a dangerous correction is coming.
Jim Rogers recently admitted to Yahoo! that he is staying far away from U.S. stocks.
New filings also revealed billionaire George Sorosâ€™ massive short position on the S&P 500.
Previously, Soros allocated 3% of his portfolio to shorting the S&P. Itâ€™s a common practice major investors use to insure their positions against unforeseen pullbacks.
But he just increased his short position on the S&P 500 over 5X fold, taking it to 16% of his entire portfolio.
That is an alarming sign that Soros is betting on a market collapse.
So the question remains: Why are some of the â€œgreatest investors aliveâ€ betting against Wall Street?
According to Jim Rickards, the CIAâ€™s Financial Threat and Asymmetric Warfare Advisor, they are taking emergency measures now before a historic economic meltdown strikes â€“ one he, and many of his colleagues at the U.S. Intelligence Community, fear is unavoidable.
In an exclusive interview with Money Morning, Rickards warned, â€œThe signals weâ€™ve been tracking are quite clear, a 70% stock market crash is imminent.â€
â€œThink of the market down 70%. If Buffett has that $55 billion in stocks, he loses $38 billion,â€ he explained.
Rickards, a three-decade veteran of Wall Streetâ€™s biggest hedge funds and investment banks, knows billionaires like Buffett are well-connected to both the financial markets and U.S. government.
Does this chart prove a 70% stock market crash is imminent?
So itâ€™s logical theyâ€™d have the luxury of receiving an advanced warning of a coming catastrophe similar to what his work with the CIA is forecasting.
â€œEvery business in the world whose back is to the wall, theyâ€™re distressed, they go to Warren Buffettâ€ asking for a bailout, Rickards explained. â€œThink of the information he has. He sees everything.â€
â€œI think Buffett is seeing the same things my colleagues and I are.â€
Rickards stepped forward to take part in this exclusive interview so average Americans could receive this early warning as well.
During the discussion, Rickards shared a series of dangerous economic patterns that have recently appeared that he and those in the highest ranks of the intelligence community have been tracking.
What they reveal is an economy that has reached what he refers to as a â€œsuper critical state.â€
â€œEverybody knows we have a dangerous level of debt. Thatâ€™s no secret,â€ he said. â€œBut all signs are now flashing bright red that our chickens are about to come home to roost.â€
Frightening: Single chart reveals which banks could collapse (and how soon). If your life savings is in a major bank, please look at this now.
Rickards focused on five â€œflashpointsâ€ the Intelligence Community is closely monitoring that they believe will soon ignite this collapse.
â€œThis nearly instantaneous 70% stock market crash is just Phase 1. From the outside, nobody will see it coming,â€ Rickards explained.
â€œOnce it becomes clear that itâ€™s not a flash crash â€“ itâ€™s a systemic meltdown in the economy itself, thatâ€™s when the gravity of the situation will sink in. And there will be no digging out from it.â€
He went on to explain how a $100 trillion meltdown would quickly unfold in the aftermath. Then he used five words to describe what this was all leading to.
â€œA 25-year Great Depression,â€ Rickards warned.