Just a couple of months into 2019, renowned investor and esteemed billionaire Warren Buffett commented that although it's doing so at a much slower rate, the economy is still observing some continuous improvements. This comes after a pretty confusing year that left many wondering whether 2019 will bring more promise, or go into recession.
According to a new report from Fox Business, Buffett told CNBC that according to reports he himself has received from the assorted businesses of his own company Berkshire Hathaway, there is no sign of the economy faltering at any rate whatsoever.
Predictions and fears
This comment from Buffett comes amid 2019 already filled with unnecessary dread despite only being two months in. Late last year, predictions and fears of a possible 2019 recession are rampant, causing unease among businesses and people in the financial field. Part of the ongoing reason for this is the shrinking spread between both long and short term interest rates, the shrinking of the Federal Reserve's balance sheet, and current US President Donald Trump's steadily increasing tariffs not just on China but other countries as well. Furthermore, the slowdown of economies from other parts of the world and the deceleration of both the automotive and housing industries are also listed as possible factors.
Of course, progress is still being made, especially in Trump's part. Over the past few days, the US President has been meeting up with Liu Hei, who is China's current Vice Premier, as well as his team to make negotiations.
Per Forbes, progress has been made on the easier issues, although further talks are needed if solutions for the bigger ones will be ever made.
Hope for 2019
Despite this, however, Buffett is still optimistic for 2019 and has further commented that even though inflation is steadily increasing, there is still nothing to be alarmed about at this point of time. Due to numerous issues, the economy has slowed down, but it's still improving, and progress, no matter how slow, is still progress.
However, Buffett also revealed that he is still highly puzzled about home construction and its current slow pace. Per Buffett, it's been a decade after the recession, and more renters should be in the market looking to purchase their first homes by now. However, the slowdown of the home market is also part of the many reasons as to why many analysts are expecting a recession sometime later this year.
