Buffett put a lot of money into Japanese industrial conglomerates over the past 2 years, I wonder if he decides to invest more?
In October 1987 the DOW had a one-day loss of 22.6%. I stayed out of the market for the next 2 years. (I’m at least 25% poorer today as a result.) Ever since, it’s been “Stocks for the Long Run” and maintaining my largely stock asset allocation through thick and thin.
I wouldn’t be surprised if the Fed did an immediate rate cut to “improve liquidity”.
“Liquidity” (or lack) isn’t as much of a problem for Japan and the US as their excessive debt to GDP ratios, never mind the US’s endless foreign follies.
What Powell needs to do (and will probably do) is to stand fast in his dual efforts to end the Greenspan put and to gain control of the shadow banking system.
Yep. I learned early on I was terrible at market timing.
My favorite recent headline was how unemployment “spiked” going from 4.2 to 4.3. Irrational exuberance or doom and gloom sells newspapers (or rather garners eyeballs, these days).
Buffett’s move to cash was a signal I guess, but I’m no Buffett. However, I do let him manage a portion of my portfolio.
They are still up a lot from when he bought them. He also did some kind of currency voodoo to make it work, I don’t know if those conditions still exist.
But that’s why you should never write off Buffett. He can do deal like that and he’s probably the only one. His enormous cash horde looks pretty good at the moment as well.
I thought I got lucky, when I bought MSFT in my cash account, for $5/share less than I sold a similar position for in my IRA…Today, MSFT is down another $40.
