Berkshire Hathaway, investment arm of Mr. Buffett, has full liquidity like its rivals, but is just waiting for the good deals because of overestimation of global stock markets. S&P500 already has recovered its plunge during last fourth quarter, and issue of high valuation is coming up again. Even though he is still positive about economy of the US, he indicated the corporate US is in expensive range in short-term.
Many research analysts are suggesting that proceeding recovery of global equities during first quarter this year would stop in anytime. Problem in global macroeconomic situation, specially in China, is not solved at all, making US Federal Reserve and European Central Bank to reconsider their policy stance. Some economists are suggesting that Chinese GDP growth for this year could be 2% level in the worst scenario.
While the most fundamental-based players are worrying about the market, real movement in the market is ignoring the warnings. Performance of the US stock market during last January was the best in recent history. It is not just the US market. Yesterday, Chinese Shanghai index rose by more than 5%. It happened in just a day. As always, real economy and stock market could proceed in different direction for too long time. Asset market does not reflects the economic situation all the time.
Many research analysts are suggesting that proceeding recovery of global equities during first quarter this year would stop in anytime. Problem in global macroeconomic situation, specially in China, is not solved at all, making US Federal Reserve and European Central Bank to reconsider their policy stance. Some economists are suggesting that Chinese GDP growth for this year could be 2% level in the worst scenario.
While the most fundamental-based players are worrying about the market, real movement in the market is ignoring the warnings. Performance of the US stock market during last January was the best in recent history. It is not just the US market. Yesterday, Chinese Shanghai index rose by more than 5%. It happened in just a day. As always, real economy and stock market could proceed in different direction for too long time. Asset market does not reflects the economic situation all the time.
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