BUFFETT: 'I think that bonds are very overvalued'

RatesFREDThree decades of falling rates may be coming to an end.

Warren Buffett is famous for his long-term bets on companies that he thinks are cheap.

Conversely, he’s not known for short positions.

But in an interview with CNBC’s Becky Quick, Buffett revealed one asset class he would short.

“If I had an easy way, and a non-risk way, of shorting a whole lot of 20- or 30-year bonds, I’d do it,” he said.

These long term bonds have effectively been a bull market for three decades as falling rates translated to higher bond prices.

Regarding interest rates, Buffett noted that if rates were to increase to more normal levels, stock prices would look expensive.

While he said he would short long-term bonds if he could, he also said that he couldn’t.

“But that not my game, and it can’t be done in the kind of quantity that would make sense for us. But I think that bonds are very overvalued. I’ll put it that way.”

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