By Trevor Hunnicutt and Jonathan Stempel OMAHA, Neb. (Reuters) - Billionaire Warren Buffett on Saturday said it is not likely that the United States and China will come to loggerheads on trade, saying the two countries would avoid doing "something extremely foolish." "The United States and China are going to be the two super-powers of the world, economically and in other ways, for a long, long, long time," Buffett said at Berkshire Hathaway Inc's <BRKa.N> annual shareholders' meeting in Omaha, Nebraska. "We have a lot of common interests and like any two big economic entities, there are times when they'll be tensions, but it is a win-win situation when the world trades," Buffett said. "We will have disagreements with each other (both Democrats and Republicans) and we'll have disagreements with other countries on trade," Buffett said about a trade war. "It is just too big and too obvious for that the benefits are huge and the world is dependent on it in a major way for its … [Read more...] about Buffett says U.S. and China will avoid ‘something extremely foolish’ on trade
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Last Updated Jun 19, 2009 2:06 AM EDT In a recent Wall Street Journal article, David Weidner explained how hedge funds are now driving the market and why that hurts buy-and-hold investors. When looking at the evidence, however, that claim doesn't seem to hold up. Weidner's main point is that large traders who control the volume are controlling stock prices. He points to General Motors stock as a prime example, as share prices are still trading around $1.50 despite the company being in bankruptcy. Here's what Weidner wrote: "Before the machines and the shorts took over Wall Street, stocks were evaluated by an underlying company's prospects. Buy-and-hold investing ruled the day. Investors such as Warren Buffett and Bill Miller were the models. Those fellows are a far cry from this generation's masters of the universe. Traders are in charge now. They rule the market." Weidner continued: "The buy-and-hold guys are still there, but lately they've been less successful than their hedge-fund … [Read more...] about Does Buy-and-Hold Investing Still Work?
Last Updated Jan 22, 2010 9:35 AM EST As 2009 showed us, no one has a clear crystal ball that tells us when to be in and out of the market. That's why it's important to understand that jumping in and out of the market is more likely to do harm than good, especially when you consider that some of the markets' biggest gains have come when they were least expected. The Largest Gains Often Come When Least ExpectedWhile there were some pundits who may have called the timing of the bear market correctly, I'm not aware of anyone who predicted that a great bull market would begin on March 10. And that shouldn't surprise anyone. Markets have often provided their greatest returns when least expected. Consider that from July 1932 through June 1933 (right in the midst of the Great Depression), the S&P 500 Index (then the S&P 90) returned 163 percent. Here are some other examples: Bad Market Good Market September 1929-June 1932 -83 July 1932-June 1933 +163 September 1933-March 1935 … [Read more...] about Lessons from 2009: Unexpected Bursts and Staying Invested
(MoneyWatch) A USA TODAY article earlier this week proclaimed stocks have gone nowhere in the past 13 years. The article stated: The S&P 500 hit a bull market high of 1527.46 in March 2000. It closed at 1518.20 Friday. The point: From a pure price perspective, the benchmark index has lost money over the past 13 years. That lousy performance discredits buy-and-hold investing, says Zimmermann (technical analyst at United-ICAP). AP gets market return wrong again Proof investors remain wary of stocks Financial media hypothesis Well, before you bury long-term buy and hold investing, let's look at some facts. Is it true that the S&P 500 index has gone nowhere since the turn of the century? It's absolutely true and completely misleading. The chart below shows the S&P 500 index compared to a buy and hold total stock market index fund. Though the S&P 500 index went nowhere, the index fund with dividends reinvested survived two 50 percent stock plunges and, as of last … [Read more...] about Buy and hold investing discredited?
A week after Britain's shocking vote to leave the European Union, markets seem to have pushed the pause button. After a two-day spree of near panic selling that wiped out an unprecedented $3 trillion from global markets, investors, analysts and pundits in the U.S. and abroad spent the week following the vote collectively revising their knee-jerk reactions to what has become known as the "Brexit" vote. Markets closed out the week just a hair below their pre-vote level, with the S&P 500 index rebounding from a 5.3 percent drop to finish just 10 points below where it started. A week after Britain's historic "leave" vote, what's the outlook for markets and the economy? Is the sky really falling, or are there opportunities, if not silver linings, for investors? Here are five ways markets are rethinking the impact of the unprecedented move by an EU member to begin unravelling the nearly 60-year-old project to bring peace and prosperity to Europe. 1. EUROPEAN FALLOUT The impact will vary … [Read more...] about 5 ways U.S. and global markets are rethinking Brexit