Chinese officials are expected to be in Washington this week to hold consultations with the U.S. ahead of high-level trade talks in October.World Economyread more
Saudi Arabia's defense spending is the world's third-largest — behind the U.S. and China, says Gary Grappo, former U.S. ambassador to Oman.Energyread more
President Donald Trump said Monday he's in no rush to respond to a coordinated attack that hit Saudi Arabia's oil industry over the weekend.Marketsread more
The price of oil could go sharply higher, depending on the duration of the disruption at Saudi oil facilities and whether there is a military response.Powering the Futureread more
Energy stocks, one of the worst-performing sectors this year, spiked Monday after an attack on Saudi Arabia's heart of oil production Saturday sent oil prices soaring.Marketsread more
The Saudi-led military coalition battling Yemen's Houthi movement said on Monday that the attack on Saudi oil plants was carried out by Iranian weapons and did not originate...Oilread more
After a series of setbacks on the road to an initial public offering, the parent company of real estate start-up WeWork is delaying the move, sources told CNBC Monday.Technologyread more
"The United States military, with our interagency team, is working with our partners to address this unprecedented attack and defend the international rules-based order that...Politicsread more
Crude oil's spike following attacks on Saudi Arabia's energy supply has experts weighing whether or not the gains will last.ETF Edgeread more
"In the old days, the averages would've plunged on this kind of oil shock. I know because I've lived through a bunch of them, starting in 1973," Jim Cramer says.Mad Money with Jim Cramerread more
Traders in the fed funds futures market on Monday were pricing in a 34% chance that the Fed will stay put on rates.The Fedread more
If Warren Buffett wasn't the head of Berskshire Hathaway and instead worked as a financial advisor for investors, he'd probably have a tough time holding a job these days.
That's because the man known as one of the greatest investors of all-time often underperforms the market, according to an analysis by Michael Crook, head of Americas investment strategy at UBS.
Crook this week updated a chart he first presented in 2015 that showed over daily, monthly and even on a five-year basis, Buffett's Nebraska-based conglomerate often falls short of the S&P 500.
The point, of course, isn't that investors should shun Buffett. Over time, the results more than justify the patience. But the question is whether in the current climate of short-termism and the demand for immediate results Buffett would last in the business if he didn't already have his reputation.
As Crook wrote:
The high long-term returns achieved by Berkshire Hathaway required patience through extended underperformance. My conclusion: Since most investors would fire Warren Buffett, they are also probably too quick to sell something out of a portfolio when it hasn't worked over 1-5 years (e.g. specific stocks, asset classes, and/or managers).
Buffett's outperformance over the entire period: 350 percent.
Buffett himself has long preached about the importance of long-range thinking. He doesn't dwell on his company's short-term performance, and he and J.P. Morgan Chase CEO Jamie Dimon recently floated the idea of ending the corporate practice of providing quarterly guidance to investors.
But that might not matter to some of today's investors.
"I'm actually seeing the same short-termism now in retail clients, and it's happening more often because people look at the last 10 years and say, 'You know, I thought I would have done better,'" said Mitch Goldberg, president of ClientFirst Strategy. "They forget that they're either moderate-risk investors or growth and income-based investors. They've been investing within their risk tolerance, and a lot of people are thinking, 'I don't need to worry about my risk tolerance anymore.'"
That could be happening at exactly the wrong time.
The market is getting trickier, with volatility increasing as the dynamics that have driven the decadelong bull changing. After a protracted span of approaching the market cautiously, the desire for investors to escape the shackles of risk-aversion is classic late-cycle behavior.
"I speak to financial advisors all the time. Whenever we see each other, we all feel the investing public has forgotten about the concept of risk" Goldberg said. "Investors were overly focused on risk from 2009 to 2016. And now their attitude toward risk has gone completely the other way. This is very emblematic of end-of-bull-market performance."