Perhaps the continuous rise of the US stock market for more than a decade has accumulated considerable risks. We all know that the stock market will go up and will inevitably fall. However, there has been no substantial adjustment in the US stock market, but it is certain that a major adjustment will come sooner or later. On the other hand, with the epidemic sweeping the world, many futures have become vague and hard to see, intangible risks have increased, and Buffett has begun to seek stability. Under the risk, even Buffett began to seek stability.
Buffett once said that he would not invest in gold: you know, Buffett used to dislike gold and thought that gold had no investment value and was nothing but good-looking. In his letter to shareholders, he repeatedly advised shareholders to avoid gold as an investment product, and even said: gold is scary at most, and when others are afraid, they can seize the opportunity to gain wealth from it.
Buffett, who has always looked down on gold, is now buying gold. Does this mean that the US stock market has peaked?
What happened: According to the latest Berkshire report, many investors found that Buffett began to buy gold, which caused a heated discussion. You know, Buffett has always had a bad impression of gold. Buffett thinks that gold is worthless and cannot create wealth like a company. But now Buffett has also begun to sell the stocks of these companies to buy gold, which undoubtedly sends a signal to investors. Perhaps the American stock market has been divorced from the fundamentals of the American economy, and the continuous rise has formed a huge bubble. Buffett's purchase of gold may be a signal to escape from the top.
Event reflection: Everyone knows that the current rise per share is abnormal, the bubble may burst at any time, and the current investment value of US stocks may not be high.
For ordinary people, the risk of investing in individual stocks will be greater. For ordinary people, investment funds are safer.