Interesting talk from Warren Buffett:Becky:
"To the average investor looking at getting a little bit of advice [...] he should be 40% in bonds"
Buffett:
"My family, anybody that I can advice, they are the typical people, they're not super wealthy or anything of that sort. Bear in mind they have the proper attitude and that stock can go down 20% in the next month they are not going to be bothered. I'd have them to have enough cash in hand to be comfortable, and the rest in equities [...]
I'd have producing asset, I'd favour them enormously over fixed dollar investment style. I think it's silly to have some ratio like 30-40 or 50% in bonds. They are terrible investment now!
Bonds are priced artificially, you've got some guys buying them at $85B/month, that would change at some point. And when it changes, people can lose a lot of money if they hold long term bonds"
https://youtu.be/1N3g47P-iRcAs well as Ray Dalio regarding cash and bonds:"You'd be pretty crazy to own bonds, because what is debt? it's a promise to receive currency... and isn't it clear they're going to print a lot of currency?"
"The central bank has made the bond going to 100x multiples... you put a dollar out and you get your money back in a 100 years.
Don't own bonds, and don't own cash. They produce a lot of debt and producing a lot of money to fund it"
https://www.youtube.com/watch?v=A-noFNHcrlMI already had intuition that bonds aren't good investment now. But with this talk from Warren Buffett including the multiple interviews from Ray Dalio makes me think I'll not own any bonds and will only keep cash short term.
I've let my parents having a large % of cash, they probably have over 40% in cash and bonds, so I think I need to help them move away from that even though they are 63