As global bond yields continue to soar to multi-year highs amid ballooning government debt, investors remember why market legend Warren Buffett once called long-term bonds “terrible” but heavily invested in short-term bonds years later.
In his 2017 annual letter to Berkshire Hathaway shareholders, Buffett advised investors to ignore the price swings on Wall Street and the temptation to load up on bonds despite soaring yields. He called it a "terrible mistake" for investors with long-term horizons to measure their investment "risk" by their portfolio's ratio of bonds to stocks.
