Warren Buffett, the former CEO of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), is one of the world's most famous investors. In fact, his long-term success as an investor earned him the nickname the Oracle of Omaha. So investors should pay attention when he issues a warning about elevated risk, as he recently did by suggesting there's a gambling mentality on Wall Street today. However, Wall Street's long-term history still has an important story to tell, too.
Buffett lamented that "we've never had people in a more gambling mood than now," in an interview with Fortune. He even invoked the notion of religious fervor, opining that Wall Street is like a church with a casino attached. That is a very negative view of the market environment, but it isn't unrealistic.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
After rushing headlong into cryptocurrencies, droves of people have now taken up prediction markets. Cryptocurrencies have no intrinsic value and are worth only what their owners are willing to pay. And prediction markets, by definition, have binary outcomes based on time-limited events. That predicting the outcome of a sports event (effectively gambling) can now take place at the same broker a person uses to buy stock in a company should be pretty shocking. And yet it is the norm today for many discount brokers.
However, even if you are as worried as Buffett, that doesn't mean you should dump your long-term investment approach. As the chart above highlights, the market has recovered after every bear market in history. In fact, the S&P 500 index (SNPINDEX: ^GSPC) has gone on to achieve new highs after every single downturn in history so far. It is highly likely that this trend will continue, even if investment risk is high today.
#wall #signal #long #even
Buffett lamented that "we've never had people in a more gambling mood than now," in an interview with Fortune. He even invoked the notion of religious fervor, opining that Wall Street is like a church with a casino attached. That is a very negative view of the market environment, but it isn't unrealistic.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
After rushing headlong into cryptocurrencies, droves of people have now taken up prediction markets. Cryptocurrencies have no intrinsic value and are worth only what their owners are willing to pay. And prediction markets, by definition, have binary outcomes based on time-limited events. That predicting the outcome of a sports event (effectively gambling) can now take place at the same broker a person uses to buy stock in a company should be pretty shocking. And yet it is the norm today for many discount brokers.
However, even if you are as worried as Buffett, that doesn't mean you should dump your long-term investment approach. As the chart above highlights, the market has recovered after every bear market in history. In fact, the S&P 500 index (SNPINDEX: ^GSPC) has gone on to achieve new highs after every single downturn in history so far. It is highly likely that this trend will continue, even if investment risk is high today.
#wall #signal #long #even
7 days ago
