Recently, JPMorgan Chase CEO Jamie Dimon has massively sold off his company's stock, while Berkshire Hathaway, led by the "Oracle of Omaha" Warren Buffett, has hoarded a record $334 billion in cash. These signs can't help but make investors wonder: Have they sensed the coming of a market storm in advance?

Market Signals Spark Downturn Speculation

Financial media outlet Kobeissi Letter noted that since U.S. President Donald Trump took office, most capital and risk markets have experienced significant turbulence.

With Dimon, the head of asset management giant JPMorgan Chase, recently unloading a massive amount of stock and Berkshire stockpiling an unprecedented $334 billion in cash, the Nasdaq 100 index plummeted 11% in just two weeks, amplifying market panic.

Dimon's $234 Million Exit: Did His Stock Dump Just Trigger Market Jitters?

On February 20, Dimon, through family trusts and limited liability companies, sold approximately 866,361 shares of JPMorgan Chase ($JPM) stock at an average price of about $269.83 per share, totaling $234 million. This is the first large-scale sale of stock he has made since taking over as CEO of JPMorgan Chase 19 years ago.

Moreover, according to filings with the U.S. Securities and Exchange Commission (SEC), he plans to sell a total of 1 million shares by August 1.

It is worth mentioning that since Dimon began selling, the price of $JPM stock has fallen by more than 13% in just a few days, which may be a warning sign that the market is about to usher in greater volatility.

The "Dimon Indicator" Returns:  Is His Sell-Off a Repeat of Market-Moving Magic?

In the past, Dimon's trading behavior has been regarded as an important indicator of market trends. In May 2020, when the market fell into a trough due to the pandemic, he said in an interview with CNBC that $JPM was "extremely valuable," and as a result, the stock price soared 41% within three weeks. This timing was later known as the "Dimon Bottom."

Now, whether his sell-off action implies that the market is about to face greater pressure has also become a hot topic among investors.

Buffett's $334 Billion Fortress: Is He Building a Cash Bunker for the Winter?

In addition, Berkshire Hathaway's financial report released on February 22 showed that the company's cash reserves reached $334 billion, including $286.5 billion in U.S. Treasury Bills (T-bills). In the past year alone, the company's cash increased by $145.2 billion, even exceeding the $195.3 billion in T-bills held by the Federal Reserve (Fed).

It is worth noting that Berkshire Hathaway has even not repurchased its own shares for two consecutive quarters. Buffett believes that the current market valuation is too high and that there are almost no attractive investment opportunities in the market. Only in very few cases will they find targets worth investing in.

Market Plunge & Panic:  Investors Run for Cover as Key Indicators Flash Red

After the news of Dimon's sell-off and Buffett's cash hoarding was released, the market quickly reacted. In less than two weeks, the Nasdaq 100 Index plunged 11%, and the cryptocurrency market evaporated $700 billion in a week, indicating that the capital market seems to be entering a risk-off mode.

Previously, the Atlanta Federal Reserve Bank's GDPNow model sharply lowered its forecast for U.S. GDP in the first quarter of 2025, from 3.9% growth to -2.4% contraction, and the risk of economic recession has soared.

At the same time, the Fear & Greed Index fell to its lowest point since the 2022 bear market, indicating a collapse in investor confidence.

Insider Trading Data Reveals Warning Signs

Not only Dimon and Buffett, but the insider trading trend of corporate executives also reflects market unease. In early February, the insider buying-selling ratio dropped to 0.22, the lowest since 1988, indicating that company executives are more inclined to reduce stock holdings rather than increase them.

Coincidence or Accurate Prediction?

Whether Dimon’s sell-off, Buffett’s cash stockpiling, and the subsequent market upheaval are mere coincidence remains unclear. However, the actions of these key figures have undeniably dropped a bombshell laced with pessimism onto the market.

For investors, the question remains: Does this signal a shift to defensive strategies, or is it a golden opportunity to buy the dip? That’s a decision investors will have to make for themselves.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.