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Buffett Not Bullish?

05-04-2020

The SPOOs were down over a percent last, most likely related to the bearishness (relative to his normal views) that Warren Buffett displayed during the Berkshire Hathaway love-in that took place on Saturday. Obviously, for him to completely change his point of view on the near-term future (i.e., the next several years) for the airline industry, he must have concluded that the economy is going to be a lot worse than the stock market seems to reflect at the moment.

Market Views Buffett's Pessimism as Un-Warren-ted Buffett's other verbiage also kind of fit with that sort of outlook, such as discussing what happened during the Great Depression and other less pleasant times. However, all of that angst was washed away by midday, as the Nasdaq led the charge higher slightly into the green, which helped the S&P trim its losses to about 0.5%, while the Dow was a bit heavier. (It's almost as though people feel that Warren is brilliant when he is bullish, but he is too old to think straight when he isn't.)

From there, in the afternoon the market kept grinding higher and finished in the green, led by the Nasdaq, which gained more than 1%. Away from stocks, green paper was higher, fixed income was kind of flat, and the metals were mixed, with silver losing 1% to gold sporting a small gain after another pretty volatile session. The miners were pretty firm.

Positions in stocks mentioned: none.