From a Wharton B-School professor: "How Scary is this market, really",
pathfinder.com
An excerpt:
Traditionalists dismiss all that as naive. "We are in fact in a new era,"
says Chuck Zender, managing director of Leuthold Group, a
Minneapolis research firm. "But all new eras end."
Maybe so, but it's the bulls who have been right so far. What's more,
in late March they seemed to be joined by no less an authority than
Warren Buffett, who opined in the Berkshire Hathaway annual report
that the market was not overvalued. Investors took the Dow up 116
points the very next day.
We were tempted to consider the case closed right there, but for one
other curious piece of data in the annual report. Buffett bought only
$714 million worth of stock last year, while selling over $2 billion
worth. That $714 million is the least Berkshire has invested in equities
in years. In fact, the only year that comes close (and not even that
close, as a percentage of Berkshire's net worth) is 1987, when he
spent $550 million. And you remember what happened in 1987.
;^) |
