Warren Buffet, 81, the third richest person in the world, mentions that shareholders of US companies are enjoying the economy, while most workers suffer due high unemployment rates and low home values. He predicts that the U.S. housing market will come back in a few years, while employment remains a problem that needs to be faced. While jobless rates have been stuck at 9% since last two years, hourly wages (considering inflation) were below 1.8% since last year.
- At present does Canada follow the same pattern in terms on employment and housing industry?
- Does the situation in housing industry also affect the corporate world, people’s spending power and eventually profits for the firms?
- How should one invest in their portfolios in order to have a safe investment and to avoid adverse affects of various industries?
SOURCE: Andrew Frye, “While U.S. workers struggle, investors prospering: Buffett”, Financial Post (Retrievable online at http://business.financialpost.com/2011/11/15/while-u-s-workers-struggle-investors-prospering-buffett/)