Recessions don’t come with big signals
Wednesday 5 March 2008
“Warren Buffett, the billionaire ‘sage of Omaha’ runs the hugely successful Berkshire Hathaway global conglomerate, and is, if his riches are anything to go by, usually right about these things.
Recessions don’t come with big signals – in luckier times we’ve been through one before anyone other than the economic anoraks have noticed.
On the other hand, it’s not necessary to wait for the official definition – two successive quarters of shrinking – to call it. If you feel it, as many who are caught up in the US mortgage meltdown do, then you’re in it.
But if a slump is more about attitudes and perceptions, then you won’t be pleased to learn that the world’s most famous investor and the world’s third richest man has pronounced that "indeed the US is already in a recession and it will be long and deep.” says SkyNews
If you read and believe these comments, it may be your job not your money you need to be concerned about!
If companies contract, unemployment may rise. The city of London is already bracing itself for job losses. Yet, the good advice is to do what Buffett is doing…buying for the long term. He is not selling. In fact, he may be looking for opportunities as others bail out of the markets. These are times to keep your wits about you when others may be losing theirs!
Categories: Behavioural Finance
posted by Murray Round Wealth Management @ 11:37,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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