Warren Buffet, John Paulson and George Soros, three of America’s wealthiest billionaires, are selling millions of shares at alarming rates.

Buffet’s holding company, Berkshire Hathaway, has sold shares in Johnson & Johnson and Intel.

“With 70% of the U.S. economy dependent on consumer spending, Buffett’s apparent lack of faith in these companies’ future prospects is worrisome.”

Paulson and Soros have also sold their shares in JPMorgan Chase, discount retailer Family Dollar, consumer-goods maker Sara Lee, Citigroup and Goldman Sachs.

Why is this happening?

Robert Wiedemer, an economist and author, correctly predicted the collapse of the U.S. housing market, equity markets, and consumer spending in the US in 2006.

“The chief investment strategist at Standard & Poor’s said that Wiedemer’s track record ‘demands our attention’.”

Wiedemer explains why these three billionaires have sold their stocks:

“Companies will be spending more money on borrowing costs than business expansion costs. That means lower profit margins, lower dividends, and less hiring. Plus, more layoffs.”

No one wants their stocks to have falling profit margins and shrinking dividends, and that’s possibly why these three have opted out.

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Check out the full article at Money News.