This weekend Warren Buffett and Charlie Munger held their annual Berkshire Hathaway shareholders meeting. At it they expressed caution on the markets for the short-term saying that they were not buying stocks at this moment and waiting. They also revealed that they sold their entire position in airline stocks. They had 6-10% of the shares in several major airlines worth billions and sold them all off.
Small traders actually have been rushing to buy these stocks when they crashed in March. Are they right to buy or is Buffett right to sell? I talk about this question in this stock market video update.
In this video I also explained that people need to focus on larger trends to figure out their stock trading and not just look at what is moving on any one single day. There are trading opportunities, but you have to look at the bigger picture to see what the best ones actually are instead of chase daily price action, which can be misleading at times. There are better things to buy now then crashed airline stocks.