Last week’s big gains was washed away by the stock market’s harsh dip this past Friday (DOW was slipped -261 points).
The market seems so choppy, is it time to packup the wagon and head to the hills?
I’d say no… Why? Because Warren says so!
Warren Buffett exclaimed that he doesn’t believe a double dip scenario is in the work, nor is a great depression. He then goes on to say that all of the 80+ businesses that his company Bershire Hathaway owns are doing better than in 2008, plus he said that some of the companies are even hiring new people on board (albeit at a slow rate).
So why should I believe what Warren Buffett says? Afterall, he continuously states that he can’t predict the future movement of the markets!
Well, based on the biography “The Snowball” written about him, he doesn’t make predictions lightly. Plus, he has empirical evidence (the pretty diversified businesses that his company owns), that gives him first hand information on the state of the economy!
So if Warren said it’ll be okay and we are coming out of the recession, and we are not going into the double dip scenario, I tend to listen with perked up ears! Time will tell, but if I were a betting man, I’d definitely bet on Mr. Buffett above all others!
Afterall, his stock Bershire Hathaway cost over $115,000 for just one share! When Warren took over Bershire Hathaway, it was valued around $19 for one share. So Warren must know a thing or two!
-MR
If we had extra cash on hand, we’d be investing more in market. We’ve already thrown in an additional $4000 this year. Now we are cash light, so we’ll have to hold off. 🙁 It’s like a sale on something we were going to buy anyway, lol.
maybe this is just the silence before the storm and things are going to get so bad- probably into depression levels. There is really no way of knowing the future. If there was, someone could have predicted the great depression and gained from it. From what i have read about it, everyone was like prosperous and saying “peace and safety” just before getting their faces ripped off. I hope the oracle is right and things are going to get better from here on out. God knows that we need some sunshine
@Budgeting in the Fun Stuff
I’ve been sitting on tax money that I haven’t spent yet. The market has been so choppy, that I haven’t bought much lately.
It’s low enough now though that I’m going to jump in though.
Wish me luck 😉
@kt- lifedividend
You are right, we never know what the future holds. But the causes of the “Great Recession” has mostly been fixed. Besides, there are other countries that are doing fine, even through the recession. China is still at double digit GDP growth…
I’ll still have plenty of cash on hand, but I will buy a bit more anyway.
MR, good luck!
Good ol’ Buffet, I’d believe him too. He’s an amazing man. Personally, I agree that things are heading up and now is the time (if not six months ago) to get yourself in before a steep climb upwards.
@Jesse
Buffett is king when it come to the stock market. I don’t agree with this stance on Politics though… 🙂
@Budgeting in the Fun Stuff
Thanks, first I need to get the money in my brokerage account 🙂
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