In October, when the Dow Jones Industrial Average stood at 8,979, Warren Buffett was bullish on U.S. stocks.
Nine months later, with the Dow trading above 9,000, he’s still bullish.
“I would much rather own equities at 9,000 on the Dow than have a long investment in government bonds or a continuously rolling investment in short-term money,” he tells CNBC.
That doesn’t mean Buffett sees rabid growth in the U.S. economy. “Business is flat,” he points out.
Buffett’s bullish call last October came in a New York Times op-ed piece. “I said in that article that if you wait until you see robins, spring will be over,” Buffett explains.
“You can’t wait for business to turn up and be very clear about the fact that it’s turned up ... The market is very likely to turn up before business.”
That’s why Buffett doesn’t try to time stocks, he says. “I try to price stocks. Stocks were a decent value when I wrote that article.”
Buffett stresses that he doesn’t know where stocks are headed in the next year, but he is bullish for the long term.
Still, he is worried about inflation. The massive fiscal and monetary stimulus programs are “the right thing to do. But 10 years from now, the dollar will buy a lot less than it buys now,” Buffett says.
Buffett isn’t the only one who likes U.S. stocks. Renowned mutual fund manager Bill Miller, in his latest report to shareholders, says the conditions for a bull market are “where we are now.”
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