In a live interview with CNBC's Becky Quick a few minutes ago, Warren Buffett predicted "enormous divergence" ahead in the stock performance for financial companies. In response to a question about whether financials might be the best-performing stock sector next year, Buffett advised against buying financials as a group. He said some will do well but others have done some "really dumb things."
He also tells Becky that while there has been enormous weakness in housing, so far it hasn't been felt in the employment market. But, he says, there are a lot of "dominoes" that could fall in the economy should housing weakness spread. The result, he fears, could be a recession.