Warren Baffet: avoid bonds!

Warren Baffet: avoid bonds!

Warren Baffet: avoid bonds!

Recently the next address to shareholders of the Berkshire Hathaway company of legendary Warren Baffeta was published. Such address publishes Warren every year and within that shares the opinion concerning this or that financial instrument and its appeal in the current year.

This year Baffet insistently advises to investors to avoid any relation to gold, bonds and mortgages. Despite that interest rates this year are low more than ever. That should involve investors in acquisition of bonds, Baffet considers such actions by a huge mistake and advises not to do it.

The billionaire within the address specified that, in his opinion, the bond show one of the most dangerous financial instruments. And all the matter is that during the existence, the bond already managed to destroy simply purchasing power of investors of a set of the countries. Thus investors continued to receive timely payments on an amount of debt, and even percent, but it did not bring any financial benefit. Thus he told that high interest rates quite could compensate inflationary losses and as they level of those is low, it is better to "avoid" this way of receiving profit. In the address the risk of the financial market, a mortgage and even bank deposits was noted.

Whether investors will listen to this opinion? Possibly yes, after all Warren Baffet it is not simple a star, it is the whole light-emitting diode searchlight of the financial world. However, it it is not glad accused that its a little specific strategy of investment consisted in buying up sharply «dumped in the price» assets (that occurred owing to its negative forecasts).

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