This time it is vulture investing guru Wilbur Ross providing the advice, and here are some direct quotes from Ross today:
- "Investors should not own long-term debt of any kind while the Federal Reserve continues its bond-buying program."
- "The economy is more likely to accelerate in 2014 than not. So I don't think things are grotesquely overvalued in terms of equities."
- "Where I'd be very wary is bonds. If the 10-year Treasury reverts back just to its average yield from 2000 to 2010, you know how much [the price] will go down? Twenty-three percent, 23 percent. That's a huge risk."
- "We've been advising friends that it's not worth getting a few extra basis points to take that kind of downside risk for a year or two while [Fed Chairman] Bernanke keeps this quantitative easing going."
To take advantage of the long-term debt, Ross is urging his portfolio companies to borrow as much long-term fixed-rate money as they can.
Ross enters the video at the 2:24 mark.