A few more thoughts on Doing Nothing…

Warren Buffett, CEO of Berkshire Hathaway, is sitting and waiting patiently for his next buying opportunity. He wants to buy big, like $30 Billion big, but it has to be worth it. He claims that stocks and company prices are overvalued. With 40 Billion in cash, albeit in in various currencies, the greatest investor of our time does nothing.

Ben Bernanke, the Federal Reserve Chairman, who after hiking short-term interest rates 18 consecutive times in an attempt to ward off both inflation and a housing blow off after bringing rates down and expanding credit immensely, awaits further word from the economy. Interest rates generally lag in effect about six months. Although we have an strong economy with the markets doing ever so well, any move towards tightening could wreak havoc and disaster for the current housing market that is hanging by a string.

George Bush, the President over the United States, a nation caught between the threats of terrorism and a huge deficit in spending on the war in Iraq, seems to be holding firm in his tactics. Although an attack on neighboring Iran is becoming a rather probable action, world pressure and the unknown effects such a scenario could have on oil supply and the world at large the fighting goes on but what’s new.

Even Bill Gates has waited (for whatever reasons) for the debut of Microsoft Vista, a revision of Windows five years in the making. Sony waits with the PS3 while car companies ready themselves to show off their new energy-efficient models.

Many experts in all fields from stocks to commodities, see a correction in the cards over the next few months, followed of course by better buying opportunities.

Tis’ the season of waiting. They say “Many men predict correctly but have not the patience to envision the fruits of their labor”.

So the bulls, bears, pigs and bugs await. For a stock market decline, a commodities rally, a statement from Iran, some unexpected data, a take on housing, something that will get the bells ringing again and the charging of the bulls and bears to continue. Until then…we hold the safest asset known only for its security in times of economic and geopolitical uncertainty.


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