Howard Marks agrees with Buffett that bonds are a terrible investment. What he is willing to say is that high-yield bonds are a lot less vulnerable to rising interest rates.
Relatively, Marks would prefer stocks to bonds — "relatively" being the key word.
Marks thinks that stocks are reasonably priced (hardly a table-pounding buy), but that bonds are selling at the lowest yields in history (making them as unattractive as they have ever been).
Marks thinks that investors are getting too accustomed to the current interest rate environment and they are starting to take actions that open them up to big problems when rates rise.
He does think that the government will keep rates low for a long time to come, so a day of reckoning for bond investors and variable rate borrowers may be a long way off.