Warren Buffett Says Do Not Fear, The Time To Buy Is Here
I thought I’d get a bit folksy in honor of the world’s most famous and wealthy value investor, Warren Buffett. In a must read op-ed piece in The New York Times (“Buy American. I Am.”), Buffett urges investors to embrace his mantra:
“A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.”
Buffett makes it clear that just because people refer to him as the “Oracle of Omaha” doesn’t mean he can predict the short-term movements of the stock market:
“I haven’t the faintest idea as to whether stocks will be higher or lower a month – or a year – from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.”
Even working with planetary cycles it is difficult to track day to day and short term movements in the stock market, especially when the volatility is largely being driven by what plan the government is going to come up with next. It’s far easier to map out the longer term trends, and Buffett has always made it clear that he is a long term investor.
Since the collapse of Lehman Brothers, there have been a lot of comparisons of the current financial crisis to the Great Depression. Buffett points out that “the Dow hit its low, 41, on July 8, 1932. Economic conditions, though, kept deteriorating until Franklin D. Roosevelt took office in March 1933. By that time, the market had already advanced 30 percent.”
During the Depression, Pluto (debt; financial extremes - massive wealth to bankruptcy) was in Cancer (general public/agriculture/real estate). The parallels are similar to today, as earlier this year and from November 26, 2008 to 2024, Pluto will be in Cancer’s opposite sign Capricorn. Capricorn rules government, regulation, and structures. Government programs and agencies such as the FDIC and the SEC that were founded during the Depression are in the spotlight in the current crisis. Capricorn represents big business and those at the top of the executive tower (the manmade version of the goat’s mountain).
Uranus (shocks/upheavals/wild price movements) was in Aries and challenging Pluto throughout the Depression years. This reflects the bold (Aries) solutions that were developed to transform (Pluto) the system. We will again experience Uranus in Aries challenging Pluto in Capricorn in mid 2010, and what will make these energies even stronger than they were during the Depression is that in late July 2010, Mars and Saturn in Libra will oppose Jupiter and Uranus in Aries and all of these planets will challenge Pluto in Capricorn. Since these planets will be in the early degrees of these cardinal (action-oriented) signs, we are in for a life-altering and profound energy shift that will reverberate through the world’s financial markets. This planetary lineup will particularly affect the U.S. as it will impact the USA’s natal Venus and Jupiter conjoined in Cancer that represents the nation’s wealth and abundance. Transiting Neptune (credit) in Aquarius will exactly conjoin the USA Moon as well. Throughout July and August 2010, Mercury (currency/communications) and Venus (banking/finance) will transit the signs Virgo and Libra, impacting other sensitive planetary positions in the USA’s horoscope.
Buffett mentions April 1942 as another market bottom. Back then Saturn (economic contraction) was conjoining Uranus in late Taurus (banks/finances). From now through the summer of 2010 Saturn in Virgo and Uranus in Pisces are opposing each other. These two planetary energies represent structures and systems (Saturn) that are not healthy and working properly (Virgo). Saturn represents the status quo and what was considered to be safe and reliable, and Uranus’s function is to wake us up from our slumber (Pisces) to the fact that there are serious structural defects in the financial foundation. Companies that were thought to be the very identity of Wall Street have suddenly disappeared (Uranus in Pisces). The signs Virgo and Pisces represent a cleansing process, as Virgo represents health and hygiene and Pisces the vast waters of the sea. Pisces and its planetary ruler Neptune are about dissolving boundaries and barriers, whether physical or market price support levels.
Buffett cites “the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank.” 1980 was one Saturn return ago (Saturn in Virgo as it is now), which is why the cost of food and other necessities required for daily living (Virgo) has risen dramatically since Saturn entered this sign in September 2007. Neptune relates to inflation. In the early 1980s, Saturn in Virgo was challenging Neptune in Jupiter-ruled Sagittarius, pushing inflation to record levels. Saturn opposing Uranus in Pisces (a sign ruled by Jupiter before Neptune was discovered) creates erratic and sharp price spikes. Pisces and Neptune rule oil; Uranus in Pisces created the superspike up and the sharp drop we’re currently experiencing. Federal Reserve Chairman Bernanke is using oil’s drop to justify lowering interest rates, yet prices for food, utilities, health care, and other staples have not decreased. In 2009 Jupiter (expansion) will conjoin Neptune, increasing inflation. The planetary cycles support Buffett’s belief that “the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.”
Buffett was born with the classic signatures of a value investor. People who have the earth element (Taurus/Virgo/Capricorn) strong in their chart tend to be more interested in accumulating money and this energy tends to take a more commonsense approach toward investing. With his Sun in Virgo closely conjoining Neptune, Buffett is as much attuned to the balance sheet as he is to his intuition. His Sun and Neptune harmonize with Saturn in its “home sign” Capricorn. He wants to own bluechip/“old line” businesses that he understands and can endure in any economic climate. Buffett waits to buy shares or have his company Berkshire Hathaway (BRK.A/BRK.B) buy shares or acquire the company at an advantageous price. Another planetary signature of a value investor that Buffett has is that his Mercury (Virgo’s ruler) challenges his Saturn. Buffett’s Mercury and Venus in Libra give him a sweet tooth. His Venus challenges Pluto in Cancer, helping him to dissect what’s really going on beneath the surface in companies he’s interested in investing in. Buffett’s Jupiter conjoins Pluto, reflecting his massive wealth. His Jupiter conjoins the USA Sun, reflecting that America would be the place to make his fortune. His close friend and fellow billionaire Bill Gates was also born with Jupiter conjoining Pluto (in Leo).
The planetary energies now and especially for the next couple of years reflect great fear, pessimism and panic. Or we can interpret these bearish energies as Warren Buffett does:
“In short, bad news is an investor’s best friend. It lets you buy a slice of America’s future at a marked-down price.”
Warren E. Buffett: August 30, 1930 time unknown Omaha, Nebraska
USA: July 4, 1776 5:10 PM LMT Philadelphia, Pennsylvania
Posted 10/18/2008 01:11:00 PM