If Warren Buffett tells you to sell all your U.S. stocks immediately, would you believe him?

The U.S. stock market is booming, and many people have chosen not to believe him.

After a significant drop in early August, the U.S. stock market has recently surged to new highs again, with market enthusiasm reaching new peaks.

Buffett and others have successfully harvested all the "leeks" (a term used to describe retail investors who are often the last to buy in a market bubble).

Now that they have been harvested, the U.S. stock market is set to enter a downtrend, do you believe it?

Recently, two incredible things have happened to the "Stock God" Buffett.

The first thing is that Buffett has sold again.

A document recently disclosed on the U.S. Securities and Exchange Commission's website shows that Buffett's Berkshire Hathaway sold Bank of America's stock three times in late August, reducing its holdings by approximately 24.66 million shares, with a total cash-out amount of $982 million.

From mid-July to August 27th, Buffett has sold Bank of America's stock multiple times, with a cash-out amount of up to $5.4 billion.

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Why is Buffett selling Bank of America's stock so aggressively?

He has remained silent on this matter.

Speculations from the outside world include that Bank of America's valuation is too high, or that Buffett might be preparing for a shift in the Federal Reserve's monetary policy.

However, Buffett is not only selling Bank of America's stock but also a large amount of stocks from Apple, Wells Fargo, and BNY Mellon, accumulating over $270 billion in cash.

This cannot be explained by Bank of America's high valuation alone.

Therefore, the most important reason can only be that the dollar is going to cut interest rates, and something big is about to happen in the U.S. stock market.

The second thing is that on Wednesday, Berkshire Hathaway's stock price rose by 1%, and its market value broke through the trillion-dollar mark for the first time.

Previously, companies with a market value of over a trillion dollars included Apple, Microsoft, Nvidia, Google, Amazon, Meta, and Saudi Aramco.

A few days ago, an expert said that the next U.S. stock to break through a trillion-dollar market value is likely to be Berkshire Hathaway.

This would be a golden age for Berkshire Hathaway but a tragedy for the U.S. stock market.

A company that trades stocks with a market value of over a trillion dollars can only indicate that the U.S. stock market is too hot and the bubble is too high.

Now, Berkshire Hathaway's market value has indeed exceeded a trillion dollars, but it is unknown whether Buffett is happy or sighing.

The U.S. stock market is so crazy, but Buffett has been unusually cautious this year.

Instead of pouring a lot of dollars into the stock market, he has bought a large amount of U.S. Treasury bonds with low yields but low risk.

Some say that since the death of his good friend Munger, Buffett has become more cautious.

In fact, it's not that Buffett has become cautious, but that he has information that ordinary people don't know and has known in advance that a storm is coming.

This storm is: the dollar interest rate cut will lead to a collapse of the U.S. stock market.

Historically, every time the dollar has cut interest rates, it has been the beginning of an economic or financial crisis.

This is not the fault of the interest rate cut, but rather the result of the economic or financial system's tumors having already burst during the dollar interest rate hike process.

During the dollar interest rate hike cycle, these tumors barely maintained themselves with a large amount of dollar funds.

Once the dollar cuts interest rates, the problems erupt.

It's like a cancer patient who can barely maintain balance by desperately supplementing nutrition.

Once they decide to starve to kill all the cancer cells, many complications erupt, and the body may collapse all at once.

So, why must the U.S. stock market collapse once the dollar cuts interest rates?

The first fundamental reason is that the U.S. stock market has rushed too high, with too much of a bubble.

To a large extent, this is the aftermath of the Federal Reserve's indiscriminate issuance of dollars in previous years, and it is also the direct result of the dollar interest rate hike funds accumulating domestically in the United States.

With the dollar interest rate hike, a large amount of funds flowed to the United States, and at first, they were relatively honest, with many deposited in U.S. banks, which resulted in the collapse of several banks like Silicon Valley Bank.

To prevent more bank bankruptcies, it is necessary to find a more ideal reservoir for the dollar.

With high U.S. dollar interest rates, real estate obviously cannot bear the heavy burden.

Therefore, under the deliberate guidance of the U.S. authorities, coupled with international speculators taking the opportunity to drive up prices, the U.S. stock market has become an ideal reservoir.

A large amount of funds came out of the banks and rushed into the U.S. stock market.

Even the stock god Buffett is afraid of this situation, so he sold a lot in advance and left a bunch of green leeks waiting to be harvested.

The second reason is that once the dollar cuts interest rates, a large part of the funds that were drawn to the United States by the dollar interest rate hike will have to go back to where they came from, with European funds going back to Europe, Japanese funds going back to Japan, and Chinese funds going back to China.

Of course, some will also be trapped in the U.S. stock market, or some people still live in the memory of the crazy money-making time in the past two years, and they are reluctant to leave because they are greedy for greater wealth.

Some people say, don't Americans know that the dollar interest rate cut will lead to such a result?

In fact, Americans know, but they are too confident, thinking that the consequences will not be so serious, or that everything is under control.

They originally hoped that after a large amount of funds went to the United States, some would flow into the real economy, especially the manufacturing industry.

However, they did not expect that they would all be deposited in banks first, causing the banks to collapse, and then they rushed into the stock market, causing the stock market to collapse.

Now the main body of the United States is finance, and the atmosphere is to make quick money.

Who is willing to invest in the industry hard?

Now their only way is to slowly cut interest rates and hope for a soft landing for the U.S. stock market and the U.S. economy.

But this time, will things develop as they hope?