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Posted

Well Warren Buffet on the weekend revealed he's sitting on over 100 billion in cash still in Bershire's reserves.  He's waiting for an opportunity to buy in on a low.  The economy had a strong low in March, but he said the US feds came in and injected cash quickly before Buffett could make a move bailing out a struggling company.

"All generalizations are false, including this one." - Mark Twain

Partisanship is a disease of the intellect.

Posted

Berkshire Hathaway dumped all airline stocks, believing that the airline sector will be very slow to recover.    Many believe that equity markets will test March lows as the recession losses and bankruptcies mount.   Money is fleeing to bonds.   Cash is king until the COVID dust settles.

Economics trumps Virtue. 

 

Posted (edited)
2 hours ago, bush_cheney2004 said:

Berkshire Hathaway dumped all airline stocks, believing that the airline sector will be very slow to recover.    Many believe that equity markets will test March lows as the recession losses and bankruptcies mount.   Money is fleeing to bonds.   Cash is king until the COVID dust settles.

Yes.  As always, it's hard to time the market, so it's impossible to know when we'll hit the max market low of all this.  I think it was in march, there was a lot of panic.  I can see the market going down from now as losses mount as you say and real economic data keeps coming in, but will there be the same panic selling?  Again, i could be wrong, nobody knows because nobody can predict the future.

I remember you saying you bought oil a few years ago when the oil market first tanked.  Hope you sold it.  I've decided never to touch oil, it's too political, not based on market factors.

Edited by Moonlight Graham

"All generalizations are false, including this one." - Mark Twain

Partisanship is a disease of the intellect.

Posted
6 minutes ago, Moonlight Graham said:

Yes.  As always, it's hard to time the market, so it's impossible to know when we'll hit the max market low of all this.  I think it was in march, there was a lot of panic.  I can see the market going down from now as losses mount as you say and real economic data keeps coming in, but will there be the same panic selling?  Again, i could be wrong, nobody knows because nobody can predict the future.

 

No, you are right, not panic selling.   More like a slow bleed as the quarterly numbers come in.   Will also vary by sector.   2008 - 2010 gives some insight into what can happen, but this time there is no liquidity collapse.    A collapse in consumer confidence can destroy the demand side.

 

Quote

I remember you saying you bought oil a few years ago when the oil market first tanked.  Hope you sold it.  I've decided never to touch oil, it's too political, not based on market factors.

 

I bought leveraged oil ETF's like USO, SCO, ERX, etc. for short term and day trading only...never held long.   Can't do that today because oil futures are upside down and contango.   

Economics trumps Virtue. 

 

  • 3 weeks later...

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