Friday, October 17, 2008

Buffett Says The Time To Start Buying Is Now

The markets are lower in the first hour of trading, after Asia finished mixed in overnight trading. There continues to be considerable angst in the market, as the "fear index", or VIX, is again above 70. I would not be surprised to see another bounce in the market, a la yesterday.

But for the first time in years, Warren Buffett is buying U.S. equities in his personal account, not for Berkshire Hathaway. Buffett's mantra is "be greedy when others are fearful", and he says right now "fear is widespread, gripping even seasoned investors."

He also went on to say: "Let me be clear on one point: I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over."

I recommend everyone take a look at his comments. Here is the link--

Libor rates came down a little bit more today, so credit angst is easing some. The dollar is slightly lower today, but it has been up a lot lately, so a breather is in order.

There were some solid earnings reports last night. Google (GOOG) was the standout, reporting much better than expected numbers, and giving a big boost to the stock. IBM also reported solid results, as did Intuitive Surgical (ISRG) and Gilead (GILD).

Today is also options expiration day, so I expect more intraday volatility into the close.

long GOOG, VIX puts


At 10:19 PM, Blogger OT said...

I wish I could afford his drawdowns.

At 5:53 PM, Blogger J. Kahn said...

lol. don't we all


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