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easy2012

Buffet Says Stock Cheaper Than Bond

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http://www.cnbc.com/id/39522030?

Warren Buffett says it is "quite clear stocks are cheaper than bonds" right now, but notes that relationship will change eventually when confidence in the economy is inevitably restored.

and...

Pimco's Steve Rodosky tells Dow Jones today that "the best day in Treasurys is probably behind us." He hasn't bought them since July.

So...ringledman, Buffet appears to agree with you (and I agree with you too) that buying bond makes no sense at this prices.

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http://www.cnbc.com/id/39522030?

So...ringledman, Buffet appears to agree with you (and I agree with you too) that buying bond makes no sense at this prices.

After a 29 year bond bubble even the legend of Buffett can't stop people pilling into worthless confetti.

Classic sign of the top nearing. Bonds are in euphoria land....

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but notes that relationship will change eventually when confidence in the economy is inevitably restored.

I'm tired of the sage. He's had decent timing in the past because he gets in when sentiment is weak - but he's really just bet on continued economic growth and the fact that govts will do everything they can to chase it. He'd had lost the lot without govt intervention, especially his stake in Goldman Sachs.

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I'm tired of the sage. He's had decent timing in the past because he gets in when sentiment is weak - but he's really just bet on continued economic growth and the fact that govts will do everything they can to chase it. He'd had lost the lot without govt intervention, especially his stake in Goldman Sachs.

I still believe in human ingenuity and progress and that we will live better 10 years from now. Things like genetic related technologies, clean tech etc are currently being developed. 2-3% bond yield only make sense if one expects the whole world (as many companies are now multinational) will make no or negative progress for the next 10 - 30 years

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PIMCO bond funds (Corporate and Medium Term) are still giving spectacular returns (up around 10-12% YTD).

That said, they are holding around 40% in cash.

E.g.:

PIMCO Investment Grd Corp Bd CL D(PBDDX)

Asset Allocation (%)2 as of 03/31/2010 Press CTRL + Enter to view help

03/31/2010

Domestic Bonds 48.64

Cash 35.60 Foreign Bonds 8.44

Preferreds 0.18

Other 7.14

Edited by Realistbear

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Sounds like he's trying to convince himself "Believe me, it will come back over time". :rolleyes:

Actually, Faber makes a better argument for equities here (go to 57:20 where he talks about the Mexican Peso):

The whole program is an eye-opener. The way he gasps for air though, he must be smoking too much of that juju weed in Thailand, which makes him uniquely prepared to understand global economics at the moment, imo ;)

Edit: He believes that equities will return better results over the next 10 years than anything else, but recommends buying land and some physical gold for defensive purposes.

Edited by Toto deVeer

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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