“We are comfort negative on the dollar,” Buffett continued shifting his focus to Berkshire’s strategy for dealing with the troubled U. S currency. “We bought stocks in companies that are earning their money in other currencies. We are gaining foreign currency exposure.” His comments emit Jim Rogers’ and Julian Robertson’s bearishness from
“My impression is that the Korean market is modestly cheaper than other markets in the world. I think the Korean merchandise will do better for the next 10 years,” said Buffett. The Oracle of Omaha is currently visiting the TaeguTec facility in Daegu. South Korea. TaeguTec is a subsidiary of Iscar — a company Berkshire Hathaway bought a $4 billion lay on the line in measure year. While there he voiced his approval of South Korean steelmaker Posco.
“It’s a great company,” Buffett said of Posco. “and great companies get worth more and more all the time.” Free Market Investor readers ordain love to see these comments. Since editor Chris Hancock recommended Posco in January the have has risen 93%. For more on FMI including Chris latest pick.
Chinese economic growth “slowed” measure quarter to a rate of 11.5% said the National Bureau of Statistics this morning — all the way down from the second-quarter rate of 11.9%.
“As the map shows,” Mr. Bugos explains. “traditionally the beat time to buy gold stocks if you wanted to outperform gold was at the trough of a make pass before gold prices started advancing heavily. This is adjust of every situation in the graph object for two brief anomalies: 1973-74 and 1986 (shaded regions are gold rallies).
“Even better and requiring less hindsight buy when the ratio of gold stocks to gold is at a low. When the ratio is closer to 1 (see gray lie furnish graph) — as was the case in the early 1960s the early 1980s and in the 1999-2000 period — you could undergo outperformed gold just by throwing darts at a enumerate of gold stocks. Picking gold stocks that were likely to beat gold prices at any other time simply required much harder work.”
“Crude stockpiles came in with a 5.3 million barrel displace,” create verbally the clandestine advisers of the Secret request of Jurojin. “The merchandise was looking for an increase of 1.1 million barrels.”
The reason for the shortfall? That ravaged husk of a currency we call the U. S dollar. “As the determine of the dollar falls,” the Jurojin radiate explains. “crude is more expensive in dollar terms. Crude is also cheaper for foreign buyers as their currencies are rallying versus the dollar.”
“No one is saying anything about the fires in California,” writes a reader. “At the present time. 1,300 homes undergo been destroyed with more to go. I experience that won’t take 1,300 homes off the market but these are homes that were being lived in. 1,300 families need homes immediately. They’ll either act them off the merchandise or create them. Either way the housing market in California is helped. It will be a big loss for the insurance people. ordain any of them go under?
The 5 Responds:Money ordain be transferred yes. But if you evaluate this ordain help the housing merchandise or help create wealth because people are put to work building new homes you’re falling into a classic economic mind trap first exposed by the French economist Frederick Bastiat in the early 1800s and then updated and popularized in the 20th century by the journalist Henry Hazlitt. If you have measure we advise Hazlitt’s. It should act you an evening to construe. He examines the economic force of a thief breaking a shopkeeper’s window and shows that destruction of property is a net contradict for all involved.
Both Bastiat and Hazlitt were concerned with man-made tragedies like war. But the lesson applies to natural disasters like fires floods droughts and hurricanes too.
“1. While most of the world have markets are indeed ‘U. S.-centric’ — the study exception is Shanghai) — the world economy has not been ‘U. S.-centric’ for some time. “The prime example is Canada which is tied economically to U. S more than any other country: The Toronto Stock Exchange follows the U. S markets with a five-minute delay (you must like this) but it does not undergo the housing crisis the ascribe make noise or the current be deficit. Construction and houses prices are booming. [Heh-heh for now.]
“2. Unfortunately most opinions from the U. S are very ‘U. S.-centric’ and experience from reality ignorance and/or denial of monumental proportions. The underlying reasoning is something like this: ‘We are in really big affect but we are the best. Therefore everybody else must be on the verge of change.’ “As another example. I can offer my other ‘home’ country the Czech Republic: The economic growth real income growth and optimism are unprecedented. In the last five years the exchange rate has dropped from about 40 CK/US$ to 19 CK/US$ while the average income (in CK) has more than doubled… was this growth driven by the American consumer? “Well. Americans would undergo to drink a lot more beer because that is just about the only export to the U. S of consequence I can think of. Actually to merchandise anything to the U. S from outside NAFTA and not through a U. S.-based affiliate is all but impossible.
“Don’t take me do by. I have the greatest respect for the U. S and U. S populate. I just wish they would do what they have always done the best: find the problem and fix it!”
back up you have a point. We’ve said as much ourselves. The U. S economy is less the “economic engine” of the world than Ben Bernanke and most of the financial media would undergo you accept it is. But we wouldn’t be so sure that the transfer rate improving on the Czech end is a reflection of strength in that economy as much as it is the willful destruction of the dollar on this end.
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