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Dear Fellow Investor,
Once Markets Begin to Rebound, Buy These ETFs
Warren Buffett’s quiet warning to the markets played out with eerie precision.
In 2024, his firm—Berkshire Hathaway—was a net seller of a massive $134 billion worth of stocks. For longtime followers of Buffett’s actions, this was a clear signal: prepare for market turbulence. Historically, Buffett doesn't ring alarm bells loudly—but his actions always speak volumes. And when Berkshire offloads that much equity in a single year, it's worth paying close attention.
History Repeats Itself
Looking back, there's a telling pattern. In years when Berkshire was a net buyer of equities, the S&P 500 delivered average total returns of 141% in the following year. Contrast that with 93% returns in years that followed when Berkshire was a net seller.
In short, Buffett's buying and selling activity tends to precede significant movements in the broader market. And now, in 2025, we’re seeing his foresight come to life. The markets are under pressure, and the returns are notably weaker—just as history would predict.
Follow the Smart Money—And Their Cash Moves
Beyond just trimming equity exposure, Berkshire was hoarding cash—$334 billion worth by the end of 2024. At the same time, Buffett shifted a sizable chunk—$234 billion—into U.S. Treasuries. That’s a classic defensive play, signaling that he saw better value and safety in fixed-income securities than in a turbulent equity market.
This isn’t just about what Buffett sees now—it’s about what he’s positioning for in the near future. With that much dry powder on hand, Berkshire is clearly waiting for attractive valuations and calmer waters before jumping back in.
Trading Whisperer
The Next Big Name in Uranium?
Uranium has doubled since 2020.
Saskatchewan’s uranium sales just hit $2.6 billion, up 62% year-over-year. Cameco says the long-term outlook has never been stronger.
Now layer on the global demand curve:
-30+ countries pledging to triple nuclear capacity
-AI data centers expected to use 12% of US electricity by 2028
-Germany reversing course and returning to nuclear
The setup is here and one company has plans to drill in the heart of it all: Canada’s Athabasca Basin.
With early uranium hits, expanding alteration zones, and proximity to NexGen and Cameco, this could be the next name to watch in the sector.
Don’t wait for Wall Street to catch on.
But Here’s Where the Opportunity Lies:
While Buffett has always taken a conservative, long-term view, he also reminds us to be greedy when others are fearful. That timeless advice couldn’t be more relevant right now.
Markets are already pricing in a tremendous amount of fear and uncertainty—from inflation and interest rates to geopolitical risk and earnings headwinds. Investor sentiment is shaken. But historically, some of the best buying opportunities have emerged during times of maximum pessimism.
Consider what Baron Rothschild once said: “The time to buy is when there’s blood in the streets—even if it’s your own.” Or how Sir John Templeton famously sought opportunity in times of excessive pessimism.
These aren't just catchy quotes—they’re proven philosophies that underpin some of the greatest investment track records in history.
Rebounds Don’t Wait for Headlines to Turn Positive
One of the biggest mistakes investors make is waiting for things to "look better" before buying. But by the time the news turns positive, the rebound is often well underway. Market rallies are typically front-run by smart money positioning in advance—not in response to good headlines.
So, if you're willing to take a calculated contrarian stance, now may be the perfect time to position for the eventual recovery.
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How to Play It: Betting Against Fear with Inverse VIX ETFs
When markets start to recover, fear fades—and volatility often collapses. That presents a unique way to profit: by shorting volatility itself.
Here are two ETFs specifically designed to capitalize on that move:
ETF: ProShares Short VIX Short-Term Futures ETF (SYM: SVXY)
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Objective: Seeks daily investment results, before fees and expenses, that correspond to one-half the inverse (-0.5x) of the daily performance of the S&P 500 VIX Short-Term Futures Index.
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Why it works: As market volatility (VIX) drops during recoveries, this ETF typically rises—albeit at half the magnitude.
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Expense Ratio: 0.95%
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Risk Note: Because it offers -0.5x exposure, it’s relatively less volatile than full inverse products, but still not for the faint of heart.
ETF: -1x Short VIX Futures ETF (Ticker: SVIX)
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Objective: Designed to provide daily investment results that correspond to the inverse (-1x) of the Short VIX Futures Index.
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Why it works: This is a more aggressive play on volatility’s decline. When fear fades and the VIX drops, SVIX typically rises—often quickly.
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Expense Ratio: Varies slightly, typically under 1%.
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Risk Note: This ETF offers full inverse exposure, which means more upside (and downside) on daily VIX moves.
Brownstone Research
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Elon Musk’s new AI model is blowing everyone’s mind.
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And make a lot of people rich in the process.
Click here to see the details before May 1st.
What sectors of the market are you interested in right now? Do you think there's more volatility ahead? Hit "reply" to this email and let us know your thoughts!
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