You’ve got to be pretty bold to bet against two of the savviest investors in the history of the markets. That’s the case now with legendary hedge fund manager, George Soros and the world’s most successful stock market investor, Warren Buffett of Berkshire Hathaway. Both investors are bearish on the American economy.

Both Buffett and Soros recently warned they expect the United States to suffer a protracted economic recession. Soros, however, is more bearish, predicting the United States and the United Kingdom will post severe economic contractions, eventually taking crude oil prices sharply lower from its current all-time high of $133 per barrel.

If both gurus are right, then the U.S. dollar and stocks are heading lower, gold is heading higher and Treasury bonds are still undervalued. On Monday, I detailed PIMCO’s fixed-income strategy as Bill Gross, the world’s bond king, predicted Treasury bonds would suffer big declines amid rising inflation and negative real inflation-adjusted yields.

Soros has been bearish on the U.S. economy for months and still believes the CDO (collateralized debt obligation) market is a house of cards waiting to collapse. CDOs are worth approximately $35 to $40 trillion dollars; most parties to these trades still can’t match buyers and sellers.

Buffet, for his part, continues to look overseas for better investment opportunities and just concluded a tour across the Euro-zone. In the upcoming issue of The Sovereign Individual, I plug one of America’s classic global multinationals now trading more than 30% off its all-time high, paying a 3.4% dividend yield and loaded with free cash flow. And best of all, Mr. Buffett owns a slice of this great company, too!