Weekly Wrap: Smart Moves When Markets Go Wild
The week's turbulent events all followed a compelling Squawk Box appearance by Berkshire Hathaway chairman and CEO Warren Buffett, who would be identified at mid-week by Forbes as the world's richest person.
Buffett spoke the word that most in the financial community have been unwilling to speak.. the "R" word.
"I would say, by any measure of common sense, we are in a recession," proclaimed the Oracle of Omaha.
Some of those watching and listening to Buffett found what he did not say more newsworthy than what he did say. Among those observers was Mike Holland of Holland and Company, who took a very bullish tone, saying he expects the recession to be just about over by this summer, and adding that he believes Buffett thinks so, too.
"Warren Buffett told us yesterday there's a lot of opportunities in the fixed-income markets,' Holland said. "I think he's also buying stocks right now, even though he says they're just OK."
And CNBC Contributor Herb Greenberg offered a piece of advice that applies to every investor who ever thought of following a market guru. When he was asked about the wisdom of buying like Buffett, Greenberg answered in the affirmative, with one very important condition.
"If I knew I could buy when he was buying and sell when he was selling, then I would do it," Greenberg said. "I'd say that riding the coattails of any investor has its perils."