By CCN: The Dow Jones plummeted from 26,502 points to 26,160 points within minutes after the opening bell as investors expressed shock at the decision of U.S. President Donald Trump to raise tariffs to 25 percent on $200 billion worth of Chinese goods.
In the hours that followed, the Dow rebounded to 26,273 points, minimizing the day’s loss to about 0.87 percent.
The Dow futures market performance prior to the opening led strategists to forecast a 500 bloodbath at the opening. While it slipped by 450 points at the day’s lowest point, the U.S. stock market bellwether performed better than the expectations of many investors heading into the trading week.
Warren Buffett Isn’t Worried About the Dow
When asked about the 450-point drop of the Dow, billionaire investor Warren Buffett told CNBC’s Squawk Box that selling stocks based on headlines is a pretty stupid portfolio management tactic.
Not phased by the movement of the stock market in the past several hours, Buffett said:
“Well, I’m saying if you own a farm and you’re worried about selling your farm because you read the newspaper this morning or if you own a perfectly decent business and you’re down and you’re worried about selling your business today because of the headlines, then you should worry about selling stocks.”
“But if you look at stocks as businesses that you own little pieces of, why in the world should you sell it based on headlines of any sort? if you expect a farm to be a good investment over the next ten years or if you expect an apartment house to be a good investment over the next ten years and if you own a marketable security and if you expect that business to be a good business over the next ten years, it’s nonsense to get feeling good or bad about what stock prices are doing today.”
More importantly, if the strategy of U.S. President Donald…