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A wealth manager who's been rich and broke twice is selling U.S. stocks. The Buffett Index sits at 210% when 90% is ideal, and the S&P has outperformed for 17 years straight, suggesting emerging markets may be due for a turn.
A wealth manager who's been rich and broke twice is selling U.S. stocks. The Buffett Index sits at 210% when 90% is ideal, and the S&P has outperformed for 17 years straight, suggesting emerging markets may be due for a turn.
I'm selling down my American stocks mostly because I'm diversifying, because I don't want to lose. I've lost all— I've been rich 3 times, which means I've lost it twice. I can't go back. And if you just look at the cycle of American markets or the global markets, typically the US outperforms for 8 years, then emerging markets outperform for 8 years. It goes back and forth. We've been outperforming emerging markets for 17 years. I still believe the markets are cyclical. The Buffett Index, stock market valuation versus GDP, he likes it at about 90%. It's at 210%. The S&P is trading at historic highs 97% of the time. The S&P has traded at lower valuations relative to earnings. So it's not a criticism of America. I just think America has become too expensive right now.
