Warren Buffett is bullish on the United States. “It is not a smart thing to sell the United States short,” he told an audience in Canada.
We do not like to contradict the greatest investor who ever lived. But selling the U.S. short has been a pretty good investment for the last eight years. Against the euro, the American I.O.U. dollar has gone from about 90 cents to $1.45 – a loss of about 60%.
Against gold… well, you know the numbers… the U.S. money has lost about 15% per year. And U.S. companies, in real, inflation-adjusted terms, are down about 25%.
Since George W. Bush entered the White House, an investor would have been much better off in almost any other country – Brazil, for example… or Europe… or China.
But maybe the Sage of Omaha knows something we don’t know. Maybe he knows that the trend of the last eight years has now come to an end. Maybe the United States is oversold… and ready for a remarkable comeback.
Anything is possible, dear reader, anything is possible.
Markets and Money