Monday, September 13, 2010

Buffett Sees No Double Dip Recession

We've all seen the headlines.  "Market drops as double-dip fears rise", or something to that effect.  We get bearish analysts who specialize in producing headlines to grab onto (we know who these people are).  When the market does well, those people go away; when it struggles, they come right out of the woodwork.  You know who I listen to?  People who actually run businesses.  Not people who read sets of data, use only the data that promotes their thesis, and write analysis based on it.  Is the economy clicking on all cylinders?  I don't think anyone will tell you it is.  But there is a lag.  Sentiment is going to carry on negative for awhile before things get moving again.  Rail traffic is rising, and temporary employment has improved, both of which are positive signs for the broad economy. 

Buffett sees things improving "almost across the board" by the way.  And they own dozens of businesses across a wide spectrum, as well as employ 200,000+ people.  

I think things are improving, and will continue to.  It will take time.  I'd use the negative sentiment to your advantage with regard to purchasing assets, because by the time sentiment improves on a large scale, prices will be much higher.

   

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