Cellman49

Buffett's Biography: Is Goldman Sachs the New Salomon Brothers?

People are changing their behaviour. The market has not priced in this long-term trend, but big money will real soon. Once it does, it will realize that the old metric followed by Buffet, et. al. will no longer work. Savings are going up; sales going down; corporations need to entice consumers to buy with extra low rate/prices on good and services. This trend should continue long past this recession. My prediction is that deflation will continue 5-10 years. My savings rate has gone from 5% of my annual salary to 15%. I plan on getting it up to 20% by 2010. I have several friends who are doing the same. We're assuming 0% return for the next 5-10 years and planning accordingly.