Warren Buffett on Bonds and Interest Rates

(January 10, 2018)    Warren Buffett’s take on interest rates and bonds in an exclusive interview with CNBC. Why own bonds if you make 3% when after 20% taxes you make 2.4% and after 2% inflation, your potential net is only 0.4%?

Most investors own bonds (fixed income) for security and to dampen stock market volatility. However, in a rising interest rate environment, many bonds and bond funds have substantial risk…potentially leaving investors more exposed than they desire.

To learn about a more specialized approach to managing risk that allows you to take advantage of the growth in the equity markets while protecting against major losses without using bonds...schedule a time to chat with one of our client advisors.