winesong
Bend, OR
age: 88
| Buffett: U.S. in Recession, 'Stocks Not Cheap'
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MoneyNews
Monday, March 3, 2008
NEW YORK -- Warren Buffett on Monday said the U.S. economy is in recession and that "stocks are not cheap."
Speaking on CNBC television, Buffett also said he is no longer offering to guarantee $800 billion of municipal bonds backed by MBIA Inc, Ambac Financial Group Inc and FGIC Corp, three large bond insurers.
Buffett said that "from a common-sense standpoint right now, we're in a recession," though the U.S. economy has not yet recorded two straight quarters of declining gross domestic product, a traditional indicator of recession.
He said, though, that the environment is "nothing like '73 or '74 yet," referring to a deep economic downturn also marked by rising oil prices and falling stocks. Buffett said investors should not rule out the possibility of a significant economic downturn.
On Friday, Buffett's insurance and investment company Berkshire Hathaway Inc reported an 18 percent decline in fourth-quarter profit.
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rocket000
Murrayville, GA
age: 50
| Bob Doll, portfolio manager of Blackrock thinks real estate will not recover until 2010.
We currently operate with a 10% daily surplus of fuel.
India came out with it's first mass produced car for the middle class. It will cost less than $3,500 but will not be imported to the US because of emissions. China started becoming a consumer in the 1990's. They currently are buying up all our steel. The pollution in China is horrific.
These 2 countries alone will use the 10% surplus of fuel and fight for the fuel we use each day. The US must start looking at more fuel efficient vehicles and change our patterns of driving. Mass transportation has not been a successful outside of major metroplitan areas.
Areas that are currently looking good...
Large cap stocks.
American large caps with foreign exposure.
Healthcare and technology sectors are supposed to be promising.
Consider hedging your portfolio with:
REITS(great time to buy with real estate in the toilet).
Energy funds(5-8%)
Gold to support the weak doller(5%)
[Edited 8/21/2008 5:13:37 PM]
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