All eyes are on the S&P 500 as certain measures indicate that a bull market is returning. The benchmark index was officially up 20% from its recent lows as of last week.

But that doesn't mean global economic turmoil is over. The Federal Reserve is still trying to balance ending high inflation by raising interest rates, or keeping them high, without triggering a recession. It's been walking this tightrope for more than a year now, and in the meantime, inflation is still high while three banks have collapsed. 

How does all of this affect investors? Legendary investor Warren Buffett actually predicted this kind of scenario when the market crashed in 2008, and it's worthwhile to see what he said then and how it played out.

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Source Fool.com