Warren Buffett said that it makes sense to stay away from long-term bonds when the inflation comes and yields start to grow. As a result, long-term bond investors could lose money.
Warren is quiet confident about the U.S. economy and has a good feeling about the current situation.
CNBC's Becky Quick has insight from Warren Buffett. "I like owning stocks, I do not like owning bonds now," explains Buffett. Here is a video snapshot from the interview on CNBC.
Dividend Income orientated Blog. Ideas and Thoughts about Stocks, Dividends and Growth Opportunities.
Showing posts with label Bonds. Show all posts
Showing posts with label Bonds. Show all posts
Corporate Bonds – A Safe Haven For 2012
Corporate Bonds – A Safe Haven For 2012 By Guest Blogger Imogen Reed. The US economy may have turned a corner, growth in Asia may still be impressive, and the Eurozone may have been saved from going into free fall, but 2012 still promises to be an ‘interesting’ year, and a difficult one for investors. The US recovery is still not entirely secure, and if the last few months are anything to go by it is likely that this recovery will be a much slower affair than previous ones, partly at least due to the high levels of personal and government debt, which will inevitably act as a dampener on expansion for several years. Asian growth rates whilst still impressive are gradually moderating, affected not only by the slowdown in the western economies, but also by increasing costs of production resulting from indigenous wage pressures and external increases in the cost of raw materials. Meanwhile, crisis in the Eurozone may have only been deferred rather than averted. The Greek tragedy may have been largely discounted by the markets, but countries such as Portugal and Spain remain perilously close to the edge, and even countries outside the Euro such as the UK are experiencing almost no growth, and are under threat of having their AAA debt rating downgraded.
U.S. Long-Term Interest Rate History From 1831-2011 And 10-Year T-Bond Yield History Since 1900
Here are two interest rate charts of the long-term finance costs in America. They also include the 15-year mortgage rates history. The historical data of the interest rates via charts is a good indicator to judge the development over decades.
Bill Gross on Investment Outlook 2011-2014 On CNBC
Is the country's fiscal situation a "wild frontier"? Bill Gross, PIMCO founder/Co-CIO reveals where he is investing right now.
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