Tuesday, February 02, 2010
I'm tempted to bail on everything, but I probably won't because I can't time the market. If I had to make a prediction, I'd say that we'll continue to see stock market gains for a while. But there's going to be a very serious headwind before long. Interest rates are unsustainably low, government borrowing is unsustainably high, and inevitable demographics are going to cause enormous damage to the status quo in the US, Europe, and Japan. It's not entirely clear what to invest in if all hell breaks loose, but I suspect Buffett has a fairly good idea: well established brands with pricing power, companies with solid moats.