Buffett Bombs

Buffett bombed last year proving there is nothing like a 25 year bull run to make you look like a genius. He claims the rest of 2009 will be bad but also admits he has no idea where stocks are going. That is clear. He also complains a bit about algorithmic trading but evidently knows little about that either. The problem with Buffett, even as well as things such as actively managed mutual funds, is that they are simply buy and hold in one case and buy and bail in the other. Those who trade buy/sell index based instruments will continue to outperform virtually everyone because of dynamic adaptive algorithms. They are continually adjusting to risk while the buy and hold crowd owns risk.