COMMENT BY WARREN BUFFET:
Warren Buffet suggested this week that he buys stocks in all markets. He buys value at peak and in valleys. He is always buying value. He buys for ten and twenty years not ten or twenty MONTHS. HE suggested he buys AMERICA. He stated AMERICA is here today and country will be here tomorrow and in 2020 and 2030 the country will be MORE VALUABLE than it is today. Stocks always win long term he said and he should know. His earnings were sharply up at the annual meeting.
Still of the 110 major reporting companies in the first quarter 88 of the 110 provide downside negative guidance to earnings this year. Oil will lead the record first quarter blood bath in April reporting through June on the first quarter.
With these headwinds in mind there remain considerable downside risk to short term market growth where any stability and longer term trend is way later this year or next. We submit turbulence like this is NORMAL to election years.
The market likes rules they know and understand like them or not.
When the rules will change with a new administration with no front runner in sight yet no one has any idea what the box top rules look like nor will they know till the summer of next year. Market turbulence and opportunity taking is likely to be giant money trading one software program against the other in STRUCTURED BUYING AND SELLING all the way up and all the way down the cyclical rope. Private investors buying long term using Warren Buffet a your guide won’t see 24 months you’ll see 20 years.
If you own hold.
If you buying buy long term.
I would put blinders on election year dynamics while keeping one eye on the ball off shore. The risk is the world DEBT BOMB off shore. The USA risk it the inter-links to debt syndications where banks over seas or big firms tumble – staring with oil bankruptcy – where a dominos effect spooks or even panics market traders at the institutional level. That is the seeds of a SUPER CRASH. Central bankers are trying to manage the DEBT BOMB but the central bank system is s a tired failed model. A global solution needs to include a COOPERATIVE REGULATORY rethink – where central banks are merged into national treasuries in a digital fully transparent world and debts need a new restructuring.
We have suggested a new class of bonds we call SUPER BONDS which are only offered to sobering nations to reset debt into 200 year bond refinancing – and bad debt is absorbed into a G 100 Treasury with a WORLD RESOLUTION that amortizes those loses under a formal derived in what we call A GLOBAL ECONOMIC CONSTITUTIONAL CONGRESS to underwrite a NEW GLOBAL WORLD ORDER and frame work – where all G 100 cooperate versus computer to develop a permanent whole solution.
SO far no one is listening but we try to shout sanity to the insane planning – the solution can not be undertaken piece meal a global solution from all the players is required . It is doable but cooperation is required.
Berny Dohrmann – Father of Cooperation Theory – Read REDEMPTION THE COOPERATION SOLUTION – its all there.— March 1, 2016