An (Imaginary) Conversation Between Warren Buffett And Ed Snitzer
by Edward Snitzer
Ed: How do you view the world for 2016? Before you answer that Warren let me note a few items about 2015.
Since 1871 US Equities have never risen seven consecutive years in a row. 2015 didn’t break that record, down 0.7% with 284 companies down for the year. On August 21, 2015 the Dow fell 531 points, closing at 16,459, and on August 24, 2015, it fell another 1,089 points in the first few minutes of trading to 15,370, more than 16% lower than its high for the year on May 19, 2015, before recovering to close at 15,871.
Oil prices were supposed to fall in 2015 but not as much as they did. The price went from $100.00 a barrel to under $40.00 a barrel, with the S&P 500 energy index down 25% for the year.
There is grave concern about terrorist attacks such as happened in Paris and California and the strange goings-on in Presidential debates by some very peculiar candidates in both political parties as well as the first hike of interest rates by the Federal Reserve in nine years.
There is concern that the commodities markets are signaling more than a temporary over supply, but something more sinister such as a slowdown in growth in America, China and Japan, let alone in the undeveloped countries.
Have I mentioned just some of the uncertainties for 2016 Warren?