Warren Buffett Says Rally Won't Stop

Lauren Lyster analyzes the morning business headlines.
8:08 | 05/06/13

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Transcript for Warren Buffett Says Rally Won't Stop
Market futures up this morning -- because of strengthening Asian markets -- those markets of course. Enjoying a record day from the Dow and S&P 500 that when it had on Friday. -- -- -- blister from Yahoo! finance break down the top business headlines this Monday morning Lauren good morning to you -- nice weekend. Good morning get had a great weekend I'm so happy -- backs like and topic yeah. That's that's so great to win a perfect way to start up and of course I know a lot of but I don't think -- today is gonna be a perfect start to the week. Biggest Friday -- just -- banner day. And what does it it certainly was so brightly -- and new all time highs we -- S&P. -- -- about 16100 we saw the Dow -- 151000. Close a little bit below that so. -- new all time highs driven by and we had a positive jobs report better than expected to that helped. But there've been a lot of other tail winds kind of pushing the market -- we have that's that it's making their options look less desirable than stocks an improving US economy. Still a lot that's that's gone for the market and we saw that play out on Friday. Can't we technically called -- a bull market. Given the length of time that we had -- rally. -- -- so there's there's different ways to look at things as a secular. Market there's a cyclical market so and there -- gonna happen in this debate over whether we're seeing the start of a secular bull market I think the jury. I believe is still out last time I checked but yes I mean certainly this is. The direction we're heading -- and yet. And yet even so in the certainly has been some volatility in the marketplace there's no doubt about that as an -- kind of just gotten used to that kind of up and down -- -- -- it's -- just the nature of the business in general but. Really in the past four months there has been a lot of -- a lot of peaks and drops I don't know what I'm trying to suspect that it -- all place essentially. -- you're actually right but that they -- and it's being kind of the surprise is no matter what been news no matter what causes the market pull back on it made it down day what we see -- this constant trajectory pushing it forward so. As my colleague -- -- -- -- out at this is -- and the longest rally. Amber among them at least without a 5% pullbacks that really tells you that things keep -- and -- -- despite what you viewpoint which yes there are some times in the market come down but that's normal that's what happened to me that that's not something that you would never expect to study. I wanna talk -- at a -- happened over the weekend Berkshire Hathaway had its annual shareholders meeting -- interestingly. The Oracle of Omaha Warren Buffett of course told the company. To listen to naysayers instead of necessarily reveling in the Goodyear that they've had he then said that he expects the rally to continue that it's not up false rally. Is it cautious optimism as is typical buffet style what what exactly was the message that he was friendly with his share dollars. I think the message is something -- -- people that watch and hear skiers say it's pretty much consistent that positive about stocks. Optimistic. He he doesn't think that stocks look -- price of course in 2008 he said they were very cheap they're not as cheap now but and that again not overpriced and more attractive than fixed ink and investment. But what about it did say on your actually on on This Week -- George Stephanopoulos and -- the market is gonna go next week next month next year so. You know it's it's it's that the broad perspective but nobody really knows where it's going to be on any Sunday. He nominated his son Howard take over his post when he eventually sets down arise out of Berkshire Hathaway -- come under criticism for that decision. Only come under criticism for that well I will actually at -- -- TD one bear the white short seller Berkshire that was invited to probe the case to probe -- on some of the holes poke some holes and -- -- -- -- Berkshire Hathaway and he said what does his -- happen other than birth right essentially to be this non executive chairman. When Buffett is no longer with it with -- and warm up -- -- -- to this point that he's there to maintain a company culture. A case his successor gets it wrong so essentially he's there exceed ten to maintain -- company culture that it Warren Buffett has instilled in a place. Nobody's gonna keep -- in line like your father or your mother so frankly it might not be a bad about that move after all. Our in -- -- your son basic right exactly it's let's talk about currencies from an a because the dollar has really strengthened recently especially against the -- what's going on currency markets. So maybe you've heard the term currency war is -- -- -- run around with -- about a hat lines maybe a month or two without. Yes and yes yes and -- it I am not it -- yes. Yes a so so when we talk about this and as -- -- -- -- currency were concern over currency were so this has to do with what central banks are doing and -- I'm sure you're well aware that the Federal Reserve for years has been eating well now this is something that the Bank of Japan. Has really taken a massive undertaking they really want and deflation once and for all in their economy. So they're committed to a massive bond buying program and massive stimulus monetary stimulus program and order to achieve that -- have currencies they have to strengthen or weaken against something else and when you're looking at the dollar and yes. There is it amateur looking at a looking you have Japan trying to did not use -- to an extent. And the dollar's strengthening against the yen as a result of that also what you have gone for the dollar is -- the US economy is striking in. Strengthening it is getting better CC -- dynamics playing out in a dollar and yes. He's you back with what should there is always -- residents and obviously having an effect on quantitative easing any kind of fed policy making. Well here's -- thank you in the Fed wants a weaker dollar so is so you could argue that this is exactly going against with -- -- but want. But it turns a pet policies mean that that really has made it clear that they're willing to do more day even in their last -- -- C statement put that language in hinting that there. Could be an opportunity for more bond buying what we're look at what the Fed is. They're seeing inflation be well below targets and so it was -- -- -- -- targets they're concerned about inflating. Keeping that steady you want a little bit of inflation you don't want deeply should not -- asset prices fall and you really -- to an economy if you have housing prices falling if you have the stock market falling which the fact arguably has been very successful and propping up. So really nothing changes in terms of that policy with they have their eyes on are the unemployment rate which they want to get down to six point 5% they have their eye on inflation. Which is in the -- I -- below target zone so anything they want higher. And they're willing to do more -- to add to bond purchases but also -- -- down was language that we saw in the -- most recent at Helen C statement. QE explained in terms I think we can all understand is certainly I'm absolutely -- take announced the whole time -- I definitely appreciate that. Not that I caught on the history of your computer and -- that and I -- that you certainly enjoy your share your fair share of cat videos on YouTube but don't we all. Point eight guilty pleasure absolutely but what else is -- up to. So you -- reportedly as early as this week. Could announce some kind of a subscription service for some of its channels so reportedly they could be around 190 -- month which is. A pretty good deal and this is an opportunity for than if they give up -- with this to have an additional revenue stream because of course -- -- -- have ads but the budget perhaps online pale in comparison to TV. So this to be another way for them -- garner some revenue. A dollar 99 Vermont also finance an additional contents and different contents so in addition to your cat -- you could maybe have some different shows and films that have an opportunity to be on YouTube which is subscription service that -- it sounds like is it would be. And different tracks kind of like how cable TV ads that paid subscription that and you had a regular TV so I don't think that those cat videos it doesn't sound like those -- -- cost yes. And of these market chart for -- because they sure are popular. Big relief -- have been. Because many a Saturday -- -- we -- -- on the couch -- -- those cat videos the -- that Eric -- from Melissa that essentially as far as YouTube I can -- -- the future of television or or any kind of media consumption -- in the future. He said essentially this weekend now is here it is now does is right here -- clearly obviously from that from that move by YouTube that bristling -- -- monetize on the best they can. Well being in the digital space I have to tell you again that this really is the future at I agree 100%. With you what let's look at it out for -- ago -- demonstrating that just a little bit at six points 141967. Loyalists are from Yahoo! finance thank you so much immigrant Monday. Thank you.

This transcript has been automatically generated and may not be 100% accurate.

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