U.S. Treasuries Sentiment: Owning T-Bonds ‘Makes No Sense’
Bloomberg.com reporting: Cooperman: Owning T-Bonds ‘Makes No Sense’
Leon Cooperman, founder of equity hedge fund Omega Advisors Inc., said buying U.S. Treasuries is the least attractive investment in a world of “financial repression.”
Bonds will be the worst place for investors to put their money for the next three years, Cooperman, 68, said in an interview today on Bloomberg Television’s “InsideTrack” with Erik Schatzker.
“With a 2 percent government bond, if we’re talking about marginal tax rates, you’re keeping 60 percent of your 2 percent — you’re keeping 1.2 percent,” he said. “The rate of inflation is somewhere in the range of 2 to 3 percent, so your capital is being confiscated. It makes no sense.”
Remember Warren Buffett recently called bonds a “dangerous asset“.