Buffett says bonds are terrible investments today

OMAHA, Neb. (AP) — Billionaire Warren Buffett says he doesn’t like owning bonds right now, and he doesn’t think average investors should either.

Buffett said on CNBC on Monday that bonds are a terrible investment at the moment and owners of long-term bonds may see big losses when interest rates eventually rise.

The head of Berkshire Hathaway Inc. says stocks are generally selling for reasonable prices even with the market at record levels. Several years ago, stocks were very cheap during the recession.

Buffett says bond prices are artificially inflated because the Federal Reserve continues to buy $85 billion of bonds a month.

He says the average investor should keep enough cash to be comfortable and invest the rest in equities.

WKBN 27 First News provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. No links will be permitted. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s