Warren Buffett has amassed a staggering $189 billion in cash, a record amount for him. Analysts have noticed a pattern: every time Buffett accumulates large sums of cash following a Federal Reserve interest rate hike, a significant stock market crash happens within the next twelve months. This pattern has repeated in 2000, 2008, and 2020.
Buffett sells off assets and hoards cash, which he then uses to buy assets at the low point of the market. The chart clearly illustrates his strategy of accumulating cash before each crisis.
Keep an eye on $1000SATS, $QUICK, and $BTTC as Buffett's cash strategy could have an impact on the market.
