Could it be--are prices on stocks headed south? Maybe not.
By Dian Vujovich
Oh, if only there were an investment crystal ball that really could see into the future instead of all those ball-shaped talking heads that think they know where Wall Street is headed.
But there isn’t so all we’re left with are those always un-validated predictions of the future performance on stocks and the facts from yesterday.
With that in mind, let’s look back at what’s been going on in the world of equities recently.
Last week, gold flew to its latest new high of over $1400 an ounce, silver hit a 30-year high of $27.50, cotton a record of $1.51 and copper futures a record of $8,996. per ton. All, according to Navellier.
Performance over the past couple of days has changed some of that but hey, that’s the market and its whimsical ways for you.
Speaking of whimsical ways, Warren Buffett has moved some of Berkshire Hathaway’s money around and written a letter to Uncle Sam thanking the US government for some of its actions. More on that in a moment. First, some of Mr. B’s money moves.
According to a Berkshire filling statement dated September 30, his firm has divested or sold holdings in 12 companies. Some include selling a huge chunk of Nike, the world’s largest sporting-goods company; 2.8 million shares of Home Depot, the largest home improvement retailer; and millions of shares of CarMax.
On the other hand, his firm added shares of WellsFargo, Johnson & Johnson and Bank of New York Mellon Corp.
Read more of Buffett’s moves at http://tinyurl.com/2wnzmuu
On that “Dear Uncle Sam” front, Buffett once again has something to teach us: Write thank you notes.
Or, looked at another way, with Thanksgiving right around the corner, there’s plenty to be thankful for this year regarding the markets and our government’s action to stabilize them.
It’s a great letter that’s worth reading as he refers to the economic meltdown in September 2008 right along with the perils of businesses and our citizens. “Just days before, ” he writes, ” the jobs, income, 401(k)’s and money-market funds of these citizens had seemed secure. Then, virtually overnight, everything began to turn into pumpkins and mice. There was no hiding place. A destructive economic force unlike any seen for generations had been unleashed
While Buffett writes that he doesn’t know how all of the stabilization was accomplished, he thanks Bernake, Paulson, Geithner and Bair for their swift action. “And though I never voted for George W. Bush, I give him great credit for leading, even as Congress postured and squabbled
You’ll find Buffett’s letter in its entirely at: http://tinyurl.com/33f7hmq
As for the direction of the stock market, nobody knows for sure.
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