ECONOMIC SILUET: Dow hits record | Buffett builds cash hoard

Senin, 04 November 2019

Dow hits record | Buffett builds cash hoard | Will investors ever stop worrying?

MON, NOV 04, 2019

EVENING BRIEF

AS OF MON, NOV 04, 2019 • 04:01 ET

DJIA		27462.72
		+0.42%	+115.36

S&P 500		3078.36
		+0.37%	+11.45

NASDAQ		8433.20
		+0.56%	+46.80

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	257.50	+1.68	+0.66%
MCD	188.66	-5.28	-2.72%
INTC	57.61	+1.10	+1.95%

S&P 500
NAME	LAST	CHG	%CHG
GE	10.93	+0.55	+5.30%
AMD	36.29	+1.40	+4.01%
BAC	32.40	+0.60	+1.89%

NASDAQ
NAME	LAST	CHG	%CHG
AMD	36.29	+1.40	+4.01%
AAPL	257.50	+1.68	+0.66%
CMCSA	43.89	-0.86	-1.92%

EDITOR'S NOTE

What a wall of worry the Dow Jones Industrial Average has climbed this time.

Despite ongoing recession fears, a trade war, a slowing global economy, an inverted yield curve, Brexit and (list your favorite anxiety here), the Dow on Monday joined the S&P 500 and the Nasdaq in posting a new high.

That's no reason to stop worrying, though. We've got an election coming up that could change everything. And Morgan Stanley predicts dismal returns for the next 10 years, noting that the market's high valuations have been juiced by aggressive central bank policies.

It's interesting to note, during this moment of record highs, the enormous cash position that Warren Buffett's Berkshire Hathaway is building. CNBC's Pippa Stevens writes that analysts can't figure out why he isn't spending it on stock buybacks or accretive acquisitions.

Perhaps Buffett is keeping his tinder dry for better prices in a possible downturn. Many market observers note that the bull has been running for more than a decade and it's getting tired. Why not worry?

"Sooner or later, this bull market is going to end, and it's going to have a bear market and a recession," said Hugh Johnson, founder and chairman of Hugh Johnson Advisors, on CNBC's "Power Lunch."

"I don't think it's going to be a bad bear market or a bad recession, but this thing is not going to go to the sky."

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