Quote:
Originally Posted by Boomer
Plutocracy. Kakistocracy.
What could possibly go wrong with the economy.
Guardrails gone. Dereg without regard. Jobs slashed. Bridge projects over before they begin. Food industry with worsening shortages of workers. Healthcare a mess. On and on and through and through the economy — the effects will be felt by all of us.
The markets have always been unpredictable. As Buffett said, “Beware of geeks bearing formulas.” I have never bothered with all that analysis.
But as far as a feel goes, mine is that the ship is headed into uncharted waters like none we have ever seen before.
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reads true, and ominous. . well stated
increasing risk to the economy and therefore the market?
reducing equity exposure seems like a prudent step. .
But Buffett is not infallible, and doesn't represent the average investor.
He is driven completely by opportunistic valuation, buying cheaply as possible, and buying when the market is distressed at times. . He also has a legacy and could be feeling his mortality coming soon, or just realizing that his investments are fully valued and have little room for continued growth.. .
Source: S&PGlobal public documents tracking historical quarterly SP500 earnings
Note: Berkshire Hathaway's Q2 2022 $66.9 billion "unrealized investment" loss (mostly non-cash-flow) decreased the S&P 500 EPS by approximately $4.74 per share and the Financial sector by $6.04 per share
Note: Berkshire Hathaway's Q3 2023 $23.5 billion "unrealized investment" loss (mostly non-cash-flow) decreased the S&P 500 EPS by approximately $2.82 per share and the Financial sector by $2.81 per share
hmmm, $90B loss, . . . using his guidance is good if you are at his level of investing, sadly, I am not. . though trying and continuous education / improvement is always good.