Quick Hits: Warren Buffett Says "Buy."
Oracle of Omaha gets bullish on America.
Warren Buffett says the next several months, or perhaps a year, may be difficult and even ugly, but he remains confident.
"What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over," Buffett says in an op-ed article in The New York Times.
He says the current fear is a buy signal.
"Be fearful when others are greedy, and be greedy when others are fearful," Buffett suggests.
In the past, Buffett has rarely commented on the stock market. Instead, he's given his views on accounting standards, stock options, deposit insurance, corporate raiders, the trade deficit and even campaign contributions. Amid Internet and related technology mania in 1999, he warned about overvalued stocks and the possibility of a bubble - and he was right.
To be clear, he isn't cheerleading. He's making a basic point: Despite current turmoil, the US economy has a solid future - and investors might want to start thinking about it now.
"Fears regarding the long-term prosperity of the nation's many sound companies make no sense," Buffett says. "These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now."
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