Warren Buffett is preparing for an imminent recession in the U.S. – experts

Market participants paid attention to the fact that investor Warren Buffett's company Berkshire Hathaway sold shares for more than $13 billion, while it invested $4.4 billion to buy back its own securities. Buffett announced the news last week during a shareholder meeting.

The investor has gained popularity because of his ability to anticipate market conditions -- he is called an oracle for that. According to Steve Hanke, an economics professor at Johns Hopkins University, such a large-scale sale of U.S. securities by his company indicates that he expects a recession in the United States in the near future. Hanke noted that the investor knows the price of cash when the recession approaches, in addition, they give him the opportunity to earn a large commission. The professor's words are quoted by Newsweek.

Meanwhile, the number of initial claims for unemployment benefits last week reached the highest number since 2021, 264,000, Reuters reports.