Warren Buffett, the legendary investor has recently publically stated his stance that we are now GO for buying US equities. This seems like good news…right? Well…this is a very unusually move for Buffett. Let me explain. The oracle of Omaha is traditionally very secretive of his buying and the timing of these purchases. In recent years, he has become extremely well known in investment circles and this is really the first large market slump on which he has been able to bring his considerable market influence to bear. Could something else be in the mix here that we aren’t aware of? Why would Buffett make such an announcement if he really is buying? I mean, his hundreds of thousands of fans are probably right this minute emptying every cash account they have and are loading up on stocks. But if Buffett is buying, then it’s the first bear market in history where he is on the record as making such a declaration of confidence, and this makes sense from his point of view.

If he really is buying, it’s a pretty stupid mistake to signal to the billions of dollars sitting on the sidelines that this is a great time to buy, because inevitably, his fans will buy and that will mean Buffett has to pay more for any stocks he wants to get his hands on. This doesn’t sound like the action of a world class investor….to show his hand to the street. No, this smells all wrong…while Buffett may be buying, he’s getting terms on his deals that aren’t available to ordinary investors, so be careful not to fall for the hype on this one. If it really was a great time to buy…Buffet would do as he usually does…he’d buy in dead silence and say not a word to the world. This looks and smells like a bear market trap, set up by the greatest investor of all time.

• 6 ways to retire poor Inspired by this clever little piece on “Six Ways to...
• Peter Schiff's New Book: (2) Getting Our Bulls and Bears Straight In my last post I noted how Peter Schiff's analysis...
• Interpreting the Bank Stress Test Results When Dr. House wants to test if someone has a...

Tags: Investment, Investor's Business Daily, Stocks and shares, US Equities, Warren Buffett

“Investors seem to be bracing themselves for a global depression that will not occur. Foreign stocks, particularly those exposed to China or natural resources, are trading at the lowest valuations I have seen in my entire career. Fears of a global meltdown are based on the misconception that the U.S. economy is the tent pole for economic activity around the world. The premise of my entire argument is that the U.S. economy, by consuming so much of the world’s resources and manufactured goods, and borrowing so much of the world’s savings, has in fact been a drag on the global economy. 
 
The enormous global vendor financing scheme is finally coming to an end as the vendors discover that their biggest customer is flat broke. In the short run, our creditors are experiencing some pain because they finally realize that they will never get their money back. 
 
Once the foreign stock markets take this hit, they will be far better poised to grow than their American counterpart. Foreigners will reclaim their productivity and savings for themselves, and will subsequently experience the biggest global economic boom in history. America on the other hand will fare much worse, as we will be left with a hollowed out manufacturing base, dilapidated infrastructure, no savings, and a gigantic Federal Government that will regulate, spend, borrow and print our economy into ruin. 
 
For an updated look at my investment strategy, order a copy of my just released book, “The Little Book of Bull Moves in Bear Markets.” While the “bull moves” I forecast have yet to materialize, I am confident that given time they will. The good news is that now you actually have some time to put my strategy in place at favourable prices and exchange rates! 
 
– Peter Schiff is the President, Founder and Chief Global Strategist for Euro Pacific Capital. He is widely acknowledged as an expert in international markets, and in global economic strategy. He is a speaker at all the major investment conferences. He is regularly featured on CNBC and Bloomberg TV, and often quoted in the Wall Street Journal, Barron’s, New York Times, the Financial Times, Investor’s Business Daily, and many others.”

first direct is a telephone and internet bank with a distinct personality. first direct do things differently, challenge the accepted norms in banking and innovate to meet their customers' changing needs.

• Caution: Don't Always Invest Based on Others Predictions "I expect there will be some failures. ... I don't...
• Global crisis to hit India economy more in ’09: WEF - Economy and Politics - livemint.com “India’s dependence on capital flows to finance its current account...
• Keeping Your Money Safe in Economic Turmoil While many are reacting to the news of bank failures...

Tags: Banking, Barron's, Economy, Euro Pacific Capital, Global Credit Crisis, Investor's Business Daily, New York Times, Peter Schiff, the Financial Times, Wall Street Journal