It will take 3-4 years to hit bottom.

The Fed's 1% lending rate is a curiosity. It is extremely rare.

A chart of short-term rates in Grant's Interest Rate Observer shows how extraordinary 1% is. Looking back 175 years to 1831, a 1% rate has been reached only two times - first in the 1930s...and again now.

There is something unnatural about it, I conclude; it only happens when there is a crisis on the scale of the Great Depression. Instead of around the corner we are now in the bend of the corner.

Surely, some global crisis is starting do you see it?

Warren Buffet has sold all his stock and is sitting on $36 BILLION (not million) dollars in cash. Other smart money has moved into cash positions this past two years. Microsoft has $53 BILLION in cash waiting on the sidelines for market to fall.

Stay tuned to SolmonsTemple.com to see what is next.

ARTICLE NUMBER 2. (Warren Buffet's cash position is long in other currencies and short the dollar. His foreign currencies cash positions gain value as the dollar falls. M.Y.)

Warren Buffet is bearish on the dollar

March 15, 2026

Ace American investor Warren Buffett talks about his investment strategies.

Warren Buffett's letter to shareholders of his investment firm, Berkshire Hathaway, is one of the most eagerly awaited statements among investors across the globe as it records his investment strategies and views on issues haunting corporate America.

In this year's letter to shareholders Buffett condemned mutual fund companies and greedy chief executive officers and questioned the role of independent directors in companies and mutual fund boards. Buffett reaffirmed his bearish view on the dollar and said he is loading up on foreign currency.

Views from Warren Buffet's Latest Annual Report March 2004

He states that he’s finding few bargains in U.S. stocks or bonds and is bearish on the dollar having bought foreign currencies last year.

He continues his tirade against mutual fund directors, excessive executive pay and he reiterated his belief that Bush's tax cuts are mainly helping companies and the wealthy. "If class warfare is being waged in America, my class is clearly winning," he wrote.

He warned that his company’s performance in the future will fall far short of what it has been in the past as well as finding few opportunities for his growing mountain of cash.

Berkshire's cash nearly tripled last year to $36 billion. That's one of the biggest corporate cash hordes in America after Microsoft's $53 billion.

Buffett said the "pathetically low interest rates we earned on our large holdings of cash equivalents" are hurting Berkshire's performance, but he added this is a "condition that will not last."

We are "neither enthusiastic nor negative about the portfolio we hold. We own pieces of excellent businesses, but their current prices reflect their excellence. The unpleasant corollary to this conclusion is that I made a big mistake not selling several of our larger holdings during the Great Bubble.''

His big move in 2003 was into foreign currencies. "During 2002 we entered the foreign currency market for the first time, and in 2003 we enlarged our position, as I became increasingly bearish on the dollar." "Our country's trade deficit has been force-feeding huge amounts of claims on, and ownership in, America to the rest of the word. For a long time, foreign appetite for these assets readily absorbed the supply. Late in 2002, however, the world started choking on this diet, and the dollar's value began to slide against major currencies." InvestorProfit Comment

All of this continues to make us cautious on general stock prices over the next few years. We are not short term traders and therefore understand that it is unrealistic to expect to be on every move. However we still like mining and oil stocks and are always looking to add to our long term holdings on weakness. These stocks have been our portfolio for the last 2 years and proves that it is general sector trading where the best money is made, rather than trying to forecast the general market.

LINK 1. Warren Buffet: Excerpts from his 22-page letter to Stockholders: Click Here NOW

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SECOND STORY, 5-27-04
New Home Sales Dive 11.8 Percent LOWEST IN 10 YEARS

WASHINGTON (Reuters) - Sales of new U.S. homes sagged well below expectations in April to post their biggest monthly drop in more than ten years as rising mortgage interest rates cooled the busy housing market, a government report showed on Wednesday.

Sales of new homes tumbled 11.8 percent to a seasonally adjusted annual rate of 1.093 million units from an upwardly revised record high of 1.239 million in March, the Commerce Department (news - web sites) said.

Analysts polled by Reuters were expecting sales to ease to a 1.200 million unit pace.

April's rate was the lowest level of new home sales since November in what is normally the peak season for real estate sales. The decline -- the largest monthly drop since January 1994 -- could signal the end of a housing boom fueled by the lowest mortgage interest rates since the early 1960s.

Mortgage applications fell last week for the third straight week, the Mortgage Bankers Association reported earlier. At the same time, home resales rose to their second highest level on record last month as undecided home seekers acted before rates rise even higher, data released on Tuesday by the National Association of Realtors showed.

Mortgage interest rates have climbed in recent weeks as evidence of economic growth and an improving job market has led observers to anticipate the Federal Reserve (news - web sites) will soon push up short-term interest rates from their lowest level since 1958.

New home sales fell by 22 percent in the South, the region with the greatest volume. Sales fell by 9.4 percent in the West and by 2.5 percent in the Northeast, but rose 10.8 percent in the Midwest.

The number of new homes available for sale at the end of the month was at its highest level since January

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