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Friday, 28 March 2014

Warren Buffet Really Doesn't Get IT!

Doomsday debunked: Warren Buffett, investing elite, deny market meltdown on cards

By Jared Lynch 
US fund manager Jeremy Grantham's gloomy predictions for Wall Street sparked lots of interest and some controversy when they ran on our website yesterday.
We took that as a prompt to check what other well-known investors are predicting. Turns out that while a bit of caution seems to be a common theme as the Fed slowly winds down the easy money, many successful fund managers and investors aren't quite as bearish as Mr Grantham.
Warren Buffett, although concerned about the effects of the Fed tapering its $US85 billion ($92.8 billion) a month asset buying program, believed the economy is going to be ''just fine'' and equities were still the most attractive investment.
''People react too much to short-term things in the stock market whereas they behave quite rationally when they get into other investments,'' he told CNBC this month.

''The American economy for five years has been moving at a fairly steady rate upwards --not as fast as people would like -- but I think that absolutely continues now.''
Billionaire Ray Dalio, whose Bridgewater Associates is the world's largest hedge fund with $US130 billion under management, wasn't as upbeat but said that the US was in its ''boring years'', hence 2014 would be forgettable.

Howard Marks, the chairman of US
investment firm Oaktree Capital, said while equities were no longer cheap, there was no cause for panic. But he said investors should be cautious.

''The price of most assets as being on the high side of fair. We're not in the low of the crisis like five years ago. But similarly, I don't think we're in a bubble,'' Mr Marks told Zero Hedge last month.

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