Warren Buffett believes that Market Chaos is a gift for investors who keep their heads straight.
Warren Buffett asked investors to remain calm during the extreme panic times in the market, and now, in the middle of one of the most chaotic periods in modern memory, his words are tested again.
The advice came for the first time during the annual meeting of Hathaway in 1997, when the collapse of 1974 was offered, the year that witnessed the collapse of the Dow Jones industrial average of 52 % of its highest level in 1972. The market collapse came during a storm of high inflation, a global oil crisis, and the political chaos fed by the Watergate scandal.
“The country has not disappeared or anything,” Warren said at the time. “It is just people to act in extremist ways in the markets. With the passage of time, this is very good for people who keep their heads.”
Earlier this month, the S&P 500 briefly decreased for more than 20 % of its highest level in February, where it slipped to the bear market area before a slight bounce management. Dow decreased 1500 points in a row, something that has not happened since the index was created for the first time in 1896.
These declines did not frighten Warren. It is almost certain that the 94 -year -old investor sees shrinkage as a shopping opportunity.
His company, Berkchire Hathaway, sits on $ 334 billion in cash from the end of 2024 – which was more than ever – which now constitutes 30 % of total assets. As two weeks have passed before the major shareholders meeting in his company, many expect Warren to appear where some of this lint might spend.
Warren holds money while others sell under pressure
Warren is treated like ownership in full companies, not just the numbers on the screen.
Warren said: “The stock market is present to serve you, and not to guide you. This is the key to having good work, and getting rid of the risks that were present in the market,” Warren said. “No difference happens to us whether the fluctuations in the stock market ranged between half a percent a day, a quarter of a percent a day, or 5 % per day. In fact, we acquired a lot of money if the fluctuation was higher, because it will create more mistakes in the market.”
These errors already accumulate in Wall Street. Two weeks after Trump’s trick on April 2, all the main indexes ended another brutal week. Both DOW and Nasdaq compound decreased more than 2 %, while S&P slipped more than 1 %. The markets were closed on April 18 on the great Friday, but the chaos remained.
Jae Woods, the chief global strategy in Freedom Capital Markets, He said The worst tariff scenario is likely to end.
“We know the worst scenario with customs tariffs, and we know that they are negotiated,” said Jay. “So the influence that people were afraid when we walked – it seems that the worst condition is done.”
Jay added that what happens after that depends on the depth of the long -term effects. “Now we have to see where we play, and the long -term effect that will be on the market, on the stocks that lead this market.” He said he was watching the level of 5,130 on the S&P 500, describing it as a major Vibibonacci -collapse point. It can be a bottom, but it has not yet been sold. “I still think we have a lot of work that must be done to adopt the signal of everything, and this is certain.”
While counterfeit stocks, analysts look forward to profits. More than 120 S&P 500 is expected to report the results next week. This includes big names such as Alphabet and Tesla, which is part of the Magnificent Seven group of motors in the market. To date, 72 % of the companies that have reported Wall Street’s expectations.
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