Fortune: Buffett's metric says it's time to buy
The Kronicler has decided just this week that it is time to un-park some cash and move into equities. That seems not to have made as big a news splash for some reason.
do you not think that the market could still go down? what exactly do you mean by moving into equities?
Cash would be things like savings accounts, money markets, or certificates of deposit. Debt would be things like corporate bonds or government bonds. Equities would be things like stocks. (Most mutual funds are various mixtures of all the above.)
The market most certainly could go down more but it has been artificially inflated if you buy Buffet’s analysis. It is now in a more realistic range. Generally speaking, the best mehtod of investing is to keep putting money away at regular intervals and ignore short-term trends. The past few months are quite unusual and investors have been looking for things to become stable again.
So yes it could drop some more but the perception is that it is not going to drop radically more and there is increasing potential for growth in the not too distant future (months not years). Time to get back into the normal investing routine.
Leave a Reply to Michael W. KruseCancel reply