THE financial world is a mess, both in the United States and abroad.
Its problems, moreover, have been leaking into the general economy,
and the leaks are now turning into a gusher. In the near term,
unemployment will rise, business activity will falter and headlines
will continue to be scary.

So … I’ve been buying American stocks. This is my personal account I’m
talking about, in which I previously owned nothing but United States
government bonds. (This description leaves aside my Berkshire Hathaway
holdings, which are all committed to philanthropy.) If prices keep
looking attractive, my non-Berkshire net worth will soon be 100
percent in United States equities.

Why?

A simple rule dictates my buying: Be fearful when others are greedy,
and be greedy when others are fearful. And most certainly, fear is now
widespread, gripping even seasoned investors. To be sure, investors
are right to be wary of highly leveraged entities or businesses in
weak competitive positions. But fears regarding the long-term
prosperity of the nation’s many sound companies make no sense. These
businesses will indeed suffer earnings hiccups, as they always have.
But most major companies will be setting new profit records 5, 10 and
20 years from now. …