Billionaire investment genius Warren Buffett believes the US is already essentially in a recession.
In an interview with CNBC today, the man dubbed the ‘Sage of Omaha’ believes a significant slowdown is in progress, even if the technical definition of recession has not yet been met.
"I would say, by any common sense standpoint, we are in a recession," Buffett says.
The Berkshire Hathaway chairman and CEO also says he is not yet ready to look for opportunities in the equity markets, calling current stock valuations "not cheap".
While Buffett says he has found “more things to look at now” than six months or a year ago, he says the best opportunities right now are in bonds and will wait until stocks become "very cheap".
Buffett also says his offer to bail out US monoline insurers was now off the table and says Federal Reserve Chairman Ben Bernanke faces a difficult “balancing act" with inflation amid the series of interest rate cuts.
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