Announcement

Collapse
No announcement yet.

Prepare for landing....the US economy

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    #46
    Or maybe BRK A is gonna start paying a dividend finally and he needs a pile of cash to fund it.

    Comment


      #47
      Originally posted by Shane View Post
      It could also mean that the cash that he normally might keep in bonds is just being held in cash right now, due to the low yields in the bond market and the possibility of a corresponding bubble in bond prices. Rather than parking it in bonds that could pay a little interest while waiting on the next acquisition, maybe he's just holding it in cash since the yield isn't much different than bonds but cash doesn't have the downside risk that bond values do.

      ?? Just another possibility. I don't know Mr. Buffet, so I couldn't say what his thinking is for sure.
      Buffett is not a bond investor. he has gone on record saying that he still prefers equities. https://www.cnbc.com/2019/02/25/buff...-a-second.html

      But he is obviously not impressed with the current valuation of equities and still hurting from the kraft heinz acquisition. or is looking for the next Whale to buy.

      Trump continued his push today for zero or negative interest rates. He seems to believe there are no losers in this scenario. aside from the fact that it would virtually eliminate any of the fed's tools to help with a recession, it would also reduce the incentives of foreign investors to send their capital here.

      Trump appears to have a real estate mind set and believes we should just refinance our debt (maybe 100 year treasuries). he has been a borrower all his life and doesn't seem interested in the lenders' best interest (i.e. the american savers). the forecasts are one rate reduction this month, another before year end and one in 2020. hopefully some can refi their mortgages or buy the ranch they have been dreaming of!

      Comment

      Working...
      X