Scared of a Market Crash? Warren Buffett Says That's Your Cue To Get Greedy
Wall Street has seen some serious highs and lows in recent months. These stock market moves have raised some concerns about a recession or a market crash.
Read Next:
For You:
Fear can be a great motivator or a powerful roadblock for many investors. In fact, you may be familiar with the famous quote linked to Warren Buffett: 'Be fearful when others are greedy and greedy when others are fearful.' The advice may sound simple, but it can bring with it unexpected complexities and more decisions to make as an investor.
But it may not be that clear cut. GOBankingRates talked to some financial experts for their advice about being fearful as an investor.
'A down market might be the best time to buy assets for the lowest price possible,' said Annie Cole, Ed.D., money coach and founder of Money Essentials for Women. 'While a down market can mean that your personal assets, such as home value or stock value, take a hit for a period of time, it also means that assets you don't already own are lowering in price — the perfect time for you to buy for a bargain.'
Discover Next:
'Fear is the worst enemy of investors,' said Robert Johnson, Ph.D., professor at the Heider College of Business at Creighton University. 'The average investor underperforms the market because they panic.'
Johnson added that perhaps the biggest weakness in any stock investor is the person who believes they can predict market rises and falls. Johnson said attempting to time the market is 'fools gold.'
'The best way to counteract this tendency to time the market is to practice dollar cost averaging in a broad based stock market mutual fund or ETF — like one that tracks the S&P 500,' Johnson said. 'That means you are consistently buying into the market whether it has headed up, down or sideways.'
More From GOBankingRates
Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard
How Much Money Is Needed To Be Considered Middle Class in Every State?
6 Big Shakeups Coming to Social Security in 2025
This article originally appeared on GOBankingRates.com: Scared of a Market Crash? Warren Buffett Says That's Your Cue To Get Greedy
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Veteran analyst sends surprising message on stocks, bonds, and gold
Veteran analyst sends surprising message on stocks, bonds, and gold originally appeared on TheStreet. The stock market rally has been impressive. Since President Donald Trump paused most reciprocal tariffs on April 9, only days after announcing them, stocks have soared. The S&P 500 has gained about 20%, while the tech-stock heavy Nasdaq Composite is up 27%. Those returns in such a short span significantly outpace the average 10% annual return for stocks since 1928. Stocks haven't been the only winner. Gold has also notched impressive returns this year. The yellow metal has rallied 30% in 2025 as investors have sought to insulate risk amid growing economic concerns surrounding debt and the impact of tariffs on one big disappointment this year: Treasury bonds. They've tumbled, sending bond yields soaring, as global investors have soured on financing America's insatiable appetite for spending. The market action has captured the attention of many, including veteran commodities and futures analyst Carley Garner. Garner has been professionally navigating these markets for 20 years, and her track record includes accurately predicting the stock rally in 2023 and last year's decline in oil prices. Garner updated her outlook on stocks, gold, and bonds, and her takeaway may surprise you. Stocks' rally since the lows in early April likely surprised many, given significant economic risks remain. While inflation has retreated below 3% from over 8% in 2022, price increases over the past years have cash-strapped consumers, causing them to shift spending from discretionary purchases to problem has been compounded by an uptick in unemployment, which has increased to 4.2% from 3.4% in 2023, partly due to higher interest rates designed to crimp inflation. According to Challenger, Gray, & Christmas, U.S. companies have laid off 696,309 workers this year through May, up 80% from one year ago. The situation isn't likely to get much better for workers. While Trump paused many reciprocal tariffs in April, key tariffs remain, including a 25% tariff on Canada and Mexico and autos, a 10% tariff on all imports, and 30% tariff on China (total tariffs on China, including those put in place during President Trump's first term exceed 50%). The remaining tariffs, and potential for more after the 90-day pause expires, could fuel inflation later this year, particularly in retail, which sources everything from clothing to electronics from overseas. The risk of inflation alongside job losses suggests America could go headlong into a period of stagflation or recession. Despite those risks, the S&P 500 and Nasdaq Composite have notched remarkable gains. Investors who quickly sold amid tariff announcements earlier this year have been left behind, and as a result, they're buying every dip to regain their exposure. One major exception? Warren Buffett. The Oracle of Omaha has increased Berkshire Hathaway's cash position, choosing to collect guaranteed fixed income from T-bills rather than leap back into the stock market amid the uncertainty. Exiting the first quarter, Warren Buffett's cash stockpile eclipsed $347 billion, a record, and more than double the levels exiting 2023. The rallies in stocks and gold may continue, but like Buffett, Carley Garner doesn't see the risk-to-reward as overly compelling in stocks. She's also become bearish on gold relative to bonds, given that gold has moved significantly higher and, unlike bonds, doesn't pay dividends. "While I believe the S&P 500 can easily reach 6300 to 6400, the downside risk might be outsized relative to the potential reward," wrote Garner on TheStreet Pro. "Since 1928, the S&P 500 has returned an average annual rate of 10%; however, in recent years, the average return has been abnormally high, at approximately 14%. There is a good chance that, like the dot-com era, we have pulled forward gains and could be on the verge of a 'returnless' market in the coming years." Garner points to a key measure favored by Warren Buffett regarding stock market valuation as evidence that stocks are over their skis. More Experts: Fed official sends strong message about interest-rate cuts Billionaire fund manager sends surprising message on trade deficit Hedge-fund manager sees U.S. becoming Greece "The Warren Buffett Indicator measures the total stock market value vs. the GDP," wrote Garner. "Since 1950, the stock market has only been this overstretched a few other times. Not surprisingly, the dot-com bubble was one of those times. Historically, this indicator has not been the time to hit the gas on risk assets. It has been the opposite." The arguable overvaluation of stocks could mean the risk of a reckoning is high enough to concentrate on other assets. However, gold may not be the best bet, given it's already made a big move higher. Instead, it's Treasury bonds that Garner believes offer the best chance for upside. "There is only one [of these assets] near a two-decade low in valuation: Treasuries," writes Garner. "Except for some forms of real estate, it is the only asset that yields an attractive income stream. Lastly, Treasuries are the least risky asset class in the world but the market is treating the securities as anything but." Garner points out that people were flocking to own bonds with paltry yields only five years ago. Now, they're shunning yields near 4.5%. Many are hesitant to own bonds despite the high yields, fearing that bonds will continue to drop, sending yields even higher, as the U.S. debt load rises. While it's true that lower bond values could mean short-term losses, Garner views the risk of a U.S. default as unlikely, suggesting that those holding Treasuries to maturity will be fine, and pocket healthy income along the way. "Historically, there have been two other instances in history when stocks were as overvalued as they are now relative to bonds. Or, alternatively, bonds were this undervalued relative to stocks," wrote Garner. "Such opportunities have only arisen once every two decades, and they have proven to be significant inflection points in both stocks (the beginning of prolonged underperformance) and bonds (the start of a period of capital gains to enhance interest earned). This metric has been similarly favoring bonds since the initial collapse in 2023, so instant satisfaction shouldn't be expected, but patience will likely pay off."Veteran analyst sends surprising message on stocks, bonds, and gold first appeared on TheStreet on Jun 15, 2025 This story was originally reported by TheStreet on Jun 15, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
2 hours ago
- Business Insider
3 Economic Events That Could Affect Your Portfolio This Week, June 16-20, 2025
Stocks clocked in weekly losses as Middle East hostilities flared up. The Dow Jones Industrial Average (DJIA) lost 1.32% for the week, returning to negative territory year-to-date. Meanwhile, the S&P 500 finished down 0.39%, and the tech-heavy Nasdaq-100 (NDX) lost 0.60% for the week. Confident Investing Starts Here: The week unfolded positively through Thursday, with stocks lifted by better-than-expected economic data and a strong showing in tech shares. June's University of Michigan consumer sentiment survey showed that households are feeling much less pessimistic about the inflation outlook, with the consumer sentiment index strongly rebounding in its first improvement in six months. Cooler-than-expected consumer and producer inflation reports lifted Fed cut expectations and investor spirits, as the data reflected no visible impact from tariffs on prices. On the trade front, there were no major headlines, with gradual progress seen in U.S.-China trade discussions, and deals with India, Mexico, and Canada progressing in parallel. The 'no scoop' atmosphere around tariff issues supported investor calm. However, after stocks inched up near their record highs, a re-intensification of geopolitical risk – just as U.S.-China trade tensions subsided – pulled markets lower. Global stocks fell and oil prices surged on Friday, as Iran sent missiles into Israeli cities after Israeli airstrikes hit Iran's nuclear and military facilities. Gold and the U.S. dollar rose as investors searched for safe havens. The flare in Middle East tensions is a wild card for the Federal Reserve, which is having its rate policy meeting this week. After several months of oil price declines exerting a disinflationary effect on headline price indexes, this backdrop is about to change. Iran produces about 3.3 million barrels of oil per day, accounting for roughly 3% of global output. A total production shutdown could push global oil prices above $100 per barrel, with worst-case scenarios seeing spikes up to $130 – especially if the Strait of Hormuz, a chokepoint for 20% of global oil shipments, is disrupted. Although a strengthening USD can act as a partial counterweight, dampening inflation through lower import costs, the extent of its effects is limited. The futures markets still foresee no change in Fed rates at the coming meeting, and the chances for a July cut have risen only marginally. However, the central bank's path to interest rate cuts starting in September appears to have widened. Three Economic Events TipRanks Economic Calendar. » May's Retail Sales – Tuesday, 06/17 – This report indicates how much consumers are spending on durable and non-durable goods. Retail Sales is a leading indicator of economic health, offering insight into the current quarter's economic growth and the inflationary pressures stemming from consumer demand. » May's Industrial Production – Tuesday, 06/17 – This report, released by the Federal Reserve, shows the volume of production of U.S. industries like manufacturing, mining, and utilities. Although industrial production accounts for a smaller portion of the economic activity than services, its sensitivity to consumer demand and interest rates makes it a leading indicator of GDP growth and economic performance. » May's Building Permits and Housing Starts – Wednesday, 06/18 – These reports provide valuable insights into the health of the housing market, as well as the overall economy since housing demand correlates with economic growth and consumer sentiment. Both reports are leading indicators, used by economists and analysts, among other data, to measure current demand and to estimate near-term trends in real estate and related industries.
Business Insider
3 hours ago
- Business Insider
The Week That Was, The Week Ahead: Macro & Markets, June 15, 2025
Everything to Know about Macro and Markets Stocks clocked in weekly losses as Middle East hostilities flared up. The Dow Jones Industrial Average (DJIA) lost 1.32% for the week, returning to negative territory year-to-date. Meanwhile, the S&P 500 finished down 0.39%, and the tech-heavy Nasdaq-100 (NDX) lost 0.60% for the week. Confident Investing Starts Here: Risk On/Off The week unfolded positively through Thursday, with stocks lifted by better-than-expected economic data and a strong showing in tech shares. June's University of Michigan consumer sentiment survey showed that households are feeling much less pessimistic about the inflation outlook, with the consumer sentiment index strongly rebounding in its first improvement in six months. Cooler-than-expected consumer and producer inflation reports lifted Fed cut expectations and investor spirits, as the data reflected no visible impact from tariffs on prices. On the trade front, there were no major headlines, with gradual progress seen in U.S.-China trade discussions, and deals with India, Mexico, and Canada progressing in parallel. The 'no scoop' atmosphere around tariff issues supported investor calm. However, after stocks inched up near their record highs, a re-intensification of geopolitical risk – just as U.S.-China trade tensions subsided – pulled markets lower. Global stocks fell and oil prices surged on Friday, as Iran sent missiles into Israeli cities after Israeli airstrikes hit Iran's nuclear and military facilities. Gold and the U.S. dollar rose as investors searched for safe havens. Fed Ahead The flare in Middle East tensions is a wild card for the Federal Reserve, which is having its rate policy meeting this week. After several months of oil price declines exerting a disinflationary effect on headline price indexes, this backdrop is about to change. Iran produces about 3.3 million barrels of oil per day, accounting for roughly 3% of global output. A total production shutdown could push global oil prices above $100 per barrel, with worst-case scenarios seeing spikes up to $130 – especially if the Strait of Hormuz, a chokepoint for 20% of global oil shipments, is disrupted. Although a strengthening USD can act as a partial counterweight, dampening inflation through lower import costs, the extent of its effects is limited. The futures markets still foresee no change in Fed rates at the coming meeting, and the chances for a July cut have risen only marginally. However, the central bank's path to interest rate cuts starting in September appears to have widened. Stocks That Made the News ▣ Oracle (ORCL) surged over 21% last week, driven by robust fiscal Q4 2025 earnings and a bullish outlook for fiscal 2026. The company reported an 11% year-over-year revenue increase to $15.9 billion, surpassing analyst expectations. Notably, cloud infrastructure revenue soared 52%, reaching $3 billion, positioning it as Oracle's fastest-growing segment. CEO Safra Catz projected cloud infrastructure growth to accelerate from 50% in fiscal 2025 to over 70% in fiscal 2026, with total cloud growth expected to exceed 40%. These optimistic projections prompted several analysts to raise their price targets, with Deutsche Bank describing the results as a 'watershed moment for Oracle's cloud pivot.' ▣ Tesla (TSLA) rose over 4% last week, supported by incremental product news and renewed investor optimism. The company refreshed its Model S and Model X vehicles with several upgrades alongside a $5,000 price hike aimed at lifting margins and reinforcing Tesla's premium market positioning. CEO Elon Musk also announced a tentative June 22 launch date for Tesla's robotaxi reveal in Austin, fueling speculative interest in its autonomous roadmap. Separately, Musk's public softening toward Donald Trump helped ease political risk concerns. The gains capped a bullish week for the stock amid broader market negativity. ▣ Defense and aerospace stocks surged on Friday amid escalating tensions between Israel and Iran. Investors sought safety in military contractors following Israel's large-scale airstrikes on Iranian nuclear and military sites. Lockheed Martin (LMT), RTX Corp. (RTX), Northrop Grumman (NOC), and L3Harris Technologies (LHX) were among the few bright green spots on the stock performance heatmap on Friday, as the broader market declined on geopolitical fears. ▣ Another notable group in the green was energy stocks, boosted by a jump in crude oil prices as concerns spread about possible supply impacts from the escalating conflict in the Middle East. Shares of refiner Halliburton (HAL) surged by 8.3% over the week, independent producer Diamondback Energy (FANG) added more than 7.6%, and integrated giant Exxon Mobil (XOM) gained 5.3%. ▣ Shares of payment processors, including PayPal (PYPL), Visa (V), and Mastercard (MA), fell by more than 3.5% over the week after a media report indicated that retail giants Walmart (WMT) and Amazon (AMZN) are considering issuing their own stablecoins, a move that could help them avoid the interchange fees charged by credit-card providers. The Q1 2025 earnings season is over, but several notable earnings releases are still scheduled for the next few days. These include Lennar (LEN), Jabil (JBL), Kroger Company (KR), Accenture (ACN), Darden Restaurants (DRI), and CarMax (KMX).
