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Will America Pay Heed To Warren Buffett?
By Grace Cheng on October 20, 2008 | More Posts By Grace Cheng | Author's Website
The financial markets are being tossed around on a daily basis. Government officials from the US and many other countries are rushing to push through plan after plan in an attempt to alleviate the tensions in the global credit markets. Almost every day, there’s something new being discussed. Big funds are shifting their money into the US dollar, which is acting like the eye of the storm. Despite soft US economic data, the US dollar continued its reign in forex trading, advancing against currencies like the Euro, Swiss franc and Japanese yen last week, though it fell against the British pound. The advance wasn’t substantial; throughout the week, range trading dominated. EUR/USD is trapped between 1.3540 and 1.3340. USD/CHF’s nearest resistance is around 1.1500.
This week, both Canada and New Zealand central banks are expected to cut interest rates of their countries.
The Dow (^DJI) had its largest weekly rally last week in more than 5 years, closing up 4.75%. This week, earnings reports would add another layer of volatility in the stocks.
Buffett Speaks For Himself?
Last Friday, wonder-investor Warren Buffett made an unusual call to Americans, saying that they should put money into stocks rather than holding it as cash. Perhaps Buffett’s feeling anxious about too many people dumping stocks of the companies that Berkshire Hathaway owns, and perhaps, he knows how bad the outlook is. It may be worthwhile to note that Buffett as an investor, is different from Joe the plumber investor. Joe doesn’t sit on the companies’ board, hold preferred stock, or influence the companies’ decisions. It is also interesting to point out numerous research reports have shown that when adjusted for inflation, stocks may not provide any decent returns at the end of a long investing time-frame.
When you invest, make sure you do your own homework and make your own decisions. The same goes for the trading of any currencies or stocks.
Economic Calendar For Monday:
Fed’s Bernanke testifies before House Budget Committee on economy 1400 GMT
New Zealand consumer prices 2145 GMT
Economic Calendar For Tuesday:
UK CBI quarterly industrial trends 1000 GMT
Bank of Canada rate decision 1300 GMT
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Dear Grace,
I am a forex trader, and want to learn FX options. I like to jump to FX Options course and I am very technical trader, specially with Gann analysis. Please Advice.
Best regard.
Ken.
Hi Ken,
I’m not sure of any FX options courses but you can use most of the same principles used in FX trading for FX options.
There are also some trade alerts you can get free courtesy of Trading Central at the page on Forex Options
Hi Miss Grace,
How was your trading last week. I am one of your fan. I staying in Malaysia Kuala Lumpur. Do you be able to come in KL and make some preview seminar?
I would like to suggest that you should have a forecast in your website for the medium term pair. I hope it is not a hard for you to do it.
Thanks Grace.
Dear Grace:
I am very new to the markets. I am not doing any trading right now. I am just watching and am trying to learn what everything is about. I am watching the stock market and I became interested in the ForEx when I came across it two weeks ago. I became more interested like most Americans, after the bubble broke and all the nonexistant money came flowing out.
I have seen your name on some articles I’ve read. I just wanted to tell you, boy you sure are a pretty woman. You do look good. You are very easy on the eyes. I figured with all the experience you had you would be a some what older looking woman. You sure fooled me. Wow!
I will be retiring soon too. At least I hope to retire soon (3-5 years). I might have to wait until I am 62 or 65. I am 54 and was hoping to retire at 57. I am trying to buy as many shares in my mutual funds as possible while they are still cheap. Question: Do you think I will be able to retire at my original time frame? And: Would you like to take a trip with me after I retire? I know the answer already but I had to ask. You are already married or only in my dreams. Oh well, at least I asked.
Take Care Grace. It was nice to finally see who is writing the articles I have been reading.
Grace,
I am pissed off by the way you mentioned Joe the plumber. What is your point? What wrong did he do to you or any American or Singaporean that he should become a targeted smear from even someone like you?
He is a rightful citizen asking a very appropriate question, thanks to him that we all understand Obama’s tax plan a little better.
You love Obama, I get it, but it is just low to attack someone like Joe even the AMERICAN election was over. At the very least, Joe’s hands are clear of BLOOD that he didn’t support pre-born baby murderers nor unnatural marriages.
A God-fearing commoner has more respect than a sly talker who can’t do the walk, or any money worshiper. Ever look at the statistics at Cook County, Illinois? Guess not.
Warren Buffet is a successful investor, what else could Americans look up to? Hope he and his fans can bring a multi-billion dollars check to their next world. EOM
Grace:
What did you say about Joe the Plumber? I didn’t see any comments about him, so I don’t understand what Hanna is talking about.
Hopefully, America will heed Mr. Buffett’s advice. I am trying to. I am scraping together all the extra cash I can to pick up these Mutual Fund Shares at these rock bottom prices. Maybe next month the share prices will be even cheaper.
Grace, you are looking good as usual and I love your accent. Have a good weekend.