Bargain hunters should follow Warren Buffett’s lead and wait for the real market bottom – The National

Bargain hunters should follow Warren Buffett’s lead and wait for the real market bottom – The National

Bargain hunters should follow Warren Buffett's lead and wait for the real market bottom. Investors are already diving into stocks and bonds despite the US Federal Reserve cautioning against a rapid recovery. US stock markets closed the week higher.. Has such a concentration ended well.. It is true the US Federal Reserve has opened the spigots and money is pouring into the American economy: more has been injected in the past two weeks than in the whole Global Financial Crisis of 2008-09.. But if people actually read recent statements by senior Fed officials, they would know that the US regulator is cautioning against expecting a rapid recovery.. The International Monetary Fund says this is the worst global economy since the Great Depression.. It's also notable that investment has become heavily concentrated in a few leading stocks: Facebook, Amazon, Apple, Google and Microsoft on the Nasdaq, for instance.. US stock markets are themselves looking like lonely hangouts in a world where equity markets are mostly 20-30 per cent off their recent highs, and far more sanguine about the economic outlook.. A recovery will realistically take 18 months to two years.. March lows in US treasury yields may have been the top