Even with global markets struggling, legendary investor Warren Buffet says he's moved all of his personal portfolio into stocks.
Buffet spoke alongside Schwarzenegger Wednesday at a women's conference hosted by California first lady Maria Shriver in Long Beach.
Buffet said he can't predict where the market will go in the coming months, but over the next decade he's confident it will be "appreciably higher." He says that records show that stocks will outperform cash-based investments like savings accounts over the long haul. He says the economy can get backed up but "this country works."
Meanwhile, Gov. Arnold Schwarzenegger gave a warning Wednesday that the federal government should move swiftly to enact a second economic stimulus package to help teetering homeowners. If they don't, we could face another possible crisis -- banks stuck with a massive stock of vacant homes.
"The key is to make people stay in their homes," the governor said during a panel discussion with Buffet. "I think that this is the direction that the second economic stimulus package should go in."
This week, the governor said he will summon legislators back to the state Capitol, barely a month after passage of an overdue state budget. In a troubling sign, tax revenues have already slipped $3 billion below expectations. The governor wants to address the shortfall in this year's budget and figure out how to stimulate the sputtering economy. He did not set a date for lawmakers to reconvene, but aides said the budget crisis is so severe that a special session must be called before the new Legislature is sworn in Dec. 1.
