Warren Buffett is warning investors away from bonds, and strategists say they should listen.
"Bonds are not the place to be these days. Can you believe that the income recently from a 10-year Treasury bond - the yield was 0.93% at yearend - had fallen 94% from the 15.8% yield available in September 1981?" Buffett asked in his annual letter, released this weekend.
In some large countries like Japan and Germany, sovereign yields are negative, he added. "Fixed-income investors worldwide - whether pension funds, insurance companies or retirees - face a bleak future," noted Buffett.
Here's what his comments mean for stock and bond investors and if there are any better alternatives to fixed income.