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Landesman thinks investor confidence is more fragile than it appears. The catalysts for a sell-off, he says, could be anything from disappointing earnings news to weak economic data, either from the U.S. or overseas. "You're getting to a point where there is too much bullishness," says Landesman. "This market is expensive. It's discounting no bad news and I think there's a reasonable chance that at least fifty percent of the news is going to be bad." "There is just so much momentum behind this market, what I probably underestimated was just how much confidence people are gaining because the central bank is pumping so much liquidity into the market. There really is no reason to sell with Uncle Ben putting a safety net under you, and that's a very powerful force." "You are going to be looking at five to six months of lean times, but I can't tell you honestly what day that is going to start." THE ORACLE: Warren Buffett, chief executive of Berkshire Hathaway and stock market guru. Warren Buffett said on CNBC Monday that he never knows where the stock market will go in the short term, but he remains confident stocks will continue moving higher in the long run. "The retention of earnings by American industry, the growth of the country will cause stocks to go higher over time," Buffett said. "You're not getting everything out of stocks in terms of the dividends they pay compared to the earnings. That retention builds it up. It's exactly like if you had a savings account and you only took out part of your interest, your savings would grow." Instead of paying attention to when stocks are rising to records, investors should pay attention to when stocks are falling past important milestones, Buffett says. "That's when stocks are getting cheaper. That's when stocks are going on sale."
[Associated
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