What does the world’s richest investor see up ahead for the US economy?
*Bloomberg, by Josh P. Hamilton and Erik Holm, June 25, 2008
“Billionaire investor Warren Buffett says he's concerned about
‘stagflation,’ or slowing in the U.S. economy while inflation
accelerates.
‘We're right in the middle of it right now,’ said Buffett, chairman of
Omaha, Nebraska-based Berkshire Hathaway Inc., in an interview on
Bloomberg Television today. ‘I think the ‘flation’ part will heat up
and I think the ‘stag’ part will get worse.’
Buffett, the world's richest person, runs a company with a $72 billion
stock portfolio and businesses ranging from candy to corporate jet
leasing and insurance. He's said the U.S. housing slump has been a drag
on Berkshire's earnings, adding today he's unsure when the economy will
recover.
‘It's not going to be tomorrow, it's not going to be next month, and
may not even be next year,’ said Buffett, 77.
The U.S. economy will expand 1.4 percent in 2008, the weakest
performance since 2001, according to a survey by Bloomberg. The Federal
Reserve today left its benchmark interest rate at 2 percent, saying
‘uncertainty about the inflation outlook remains high.’ Consumer
prices rose 4.2 percent in the 12 months ended in May, the fastest pace
since January.”
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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