Charlie Munger, a Billionaire investor has a warning about the future of the economy.
Charlie Munger, the Vice Chair of Berkshire Hathaway and a billionaire investor, has warned about the markets being in “a lot of trouble” and the creation of “awful excess” that could lead to “terrible trouble”. Munger was referring to the GameStop (GME) squeeze, bitcoin speculation and venture capital excesses, as well as the printing of more money by the Federal Reserve to solve temporary problems. He believes that this could lead to a huge crash in markets and a disastrous economic situation.
His comments have been proven true as the SPDR S&P 500 Trust ETF (SPY) has lost 8.57 percent since his meeting, and the crypto bubble has continued to burst. Furthermore, GDP growth has fallen for two quarters in a row and inflation has risen to levels not seen in four decades. This means that future returns for the SPY are likely to be weak, as the outlook for economic growth is uncertain, multiples are higher than averages from the past, and interest rates are likely to increase. In addition, Munger warns that volatility will likely stay high for a long time and that a market crash is a genuine possibility.
Munger’s warnings should serve as a reminder to investors to be more selective and not just buy everything in the current market, as well as to keep in mind the advice to remain fully invested, use dollar cost averaging consistently over the long term, and manage their money well.
Watch video Charlie Munger, a Billionaire investor has a warning about the future of the economy. online without registration, duration hours minute second in high quality. This video was added by user Professor Harvey Egghead 13 March 2023, don't forget to share it with your friends and acquaintances, it has been viewed on our site 86 once and liked it 1 people.