Markets down today after a few down days at the end of last week. Japanese markets fell massively.
Now, low bond-like returns don’t look too bad.
1 Like
I bought some bonds two weeks ago and decided to keep the rest of my unallocated money in cash. Not sure yet whether I will suspend my monthly buying plan.
More of a big correction than a crash although the fact that it is claimed Warren Buffet is not buying is a bad sign.
Berkshire hasn’t been buying for a while, so this is not new. What’s new is that they apparently sold half of their Apple portfolio. There’s two things going on simultaneously, the disappointing results of the tech companies last week when it became clear that AI is everywhere, but not in the revenue reports (NASDAQ was hit disproportiantely harder than the other exchanges). The other thing is the (IMHO overrated) concern that the US is heading for a recession.
It is new when they are not buying after a big stock market fall if that is really true.
Again, Berkshire didn’t stop buying today or on Friday, they’ve been sitting on record cash position for a very long time
What more concerning is that a value investor like them doesn’t find enough attractive opportunities and has almost 300bn of cash not finding a home.
Congrats to those who have big holdings in Japanese assets. The Nikkei lost 18% in the last two trading days as carry trades get wiped out amid Yen rise and people have to stop losses. Perfect storm.
Again, it is new when they did not buy after a major fall, if true.
Not news, they haven’t stopped buying after a “major fall”, they haven’t been buying for much before that. Do you get the difference?
They haven’t been buying because there was no fall to buy into.
Now there is a fall and they are still not buying according to media claims.
Not only have they not been buying, they’ve been actively selling the past few quarters including half of their biggest position (AAPL).
I have one remaining Japanese stock and it lost 18% overnight.
Media doesn’t know whether BRK are buying or not right now. I suspect not.
Although they have $277B cash in hand, not a good sign
They’ve had tons of cash on hand for a while - not surprising as Buffett likes to get a good deal and there haven’t been good deals for years. What has changed in the past few quarters is how aggressive they have been in reducing their public portfolio positions - like many others, they see the risks increasing and the probability that something happens soon increasing too.
If carry traders didn’t learn their lessons from 2008, I have no sympathy.
Nkkei is picking up again.
I think I blinked and missed it.
Maybe the word crash is exaggerating it, but I think we are in for a proper correction. The economy is slowing, earnings are coming in below expectations, the big mega-stock have risen excessively and overall valuations are high.