Billionaires on the Economy in the Near Future
A few days ago I published posts about billionaires Wilbur Ross and Warren Buffett’s thoughts on where the economy is headed. I found a few more stories tracking the megawealthy and their thoughts on the economy. Even billionaires can occasionally be wrong, but they probably have more knowledge about business and investing than the average person.
Li Ka-Shing says the worst is yet to come. The US and Asia economies will slow down, which is making him more conservative regarding acquisitions. However, Hong Kong will remain stable thanks to its solid housing market. Also, China will have growth rates of 8 percent within a few years. Last year, he said Chinese stocks were in a bubble and prices would fall, and in fact they fell steeply in the last few months.
Sam Zell says the housing market will recover next year. According to Zell, single-family housing will bottom in early 2009. As a whole, the real estate market is fairly priced now. New apartment construction has slowed, which increases the prospects for current rental housing. Also, he feels the government should protect the debt of Fannie Mae and Freddie Mac.
Finally, billionaire Bruce Kovner - who had average annual returns of 28% over the last ten years - invested in Cummins Inc and Allegheny Energy.
Sources:
http://www.bloomberg.com/apps/news?pid=20601080&sid=aRc0ddXFGvoA&refer=asia
http://www.bloomberg.com/apps/news?pid=20601087&sid=aKJ0S39w8LN8&refer=home