In an annual letter to Berkshire Hathaway’s shareholders, Warren Buffett expressed his optimism about America and the market, but he also hinted that Trump’s immigration policy might become a hurdle for the economy. 

“You don’t have to be an economist to understand one of the key factors that has made America great: immigration”, he wrote. One of the main reasons for America’s miraculous economic growth has been a tide of “talented and ambitious immigrants” to the US. However, the new President Trump seems to want to fight against this tide by introducing immigration bans and tightening policies to curb the inflow.

He is also more cautious about what could happen to the market, as relatively high stock market valuations and political uncertainty might heighten volatility in the years to come.

Passive investment has always been Buffett’s investment philosophy. The Vanguard S&P index fund has climbed 85.4% over the last night years, providing an annualised rate of return of 7.1%. The passive ETF’s performance beat most of the actively managed hedge funds.

The gold price extended the rally for a fourth consecutive week, as optimism about Trump’s fiscal stimulus started to fade and uncertainty grew over European elections. Technically speaking, the spot gold price has broken the key resistance level of US$1,240 and its next resistance level is around the US$1,286 area.

Gold - Cash 

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