One of the most successful investors of all time is right there in a major newspaper essentially telling the investing masses: "Fear not. Buy stocks." Is the fact that it's such a visible call a contrarian indicator and therefore a bearish signal? But what of Mr. Buffet's historical record of correct bullish calls? Does one cancel the other out? Hmmm, like I said, that's a tough one to crack. Hindsight seems to be the only way to go here: we'll know one day if his call was totally wrong (i.e. we still have a long painful descent ahead of us), just early (we still have a little bit to go on the downside time-wise and level-wise but we strongly rebound from there) or prescient (this month marks the bottom of this bear market).
2 comments:
I don't take Mr. Buffet's call all that seriously. I got cautiously bullish when my mother insisted she sell out of her IRA and move her money into CD's.
Michael,
that's contrarian investing in its purest form!
Post a Comment