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Can you explain further how this relates to a projected stock market crash? (Other than ECO101 of 'if bonds go up stocks go down')

• s1artibartfast 3y ago
  Do you have a specific question? 99% of it comes down to Econ101 and asking where the best return is expected. Edit: Berkshire Hathaway's largest position is apple. PE of 30, or 3.3% of value, and take on some risk. Alternatively, you can purchase bonds at a 5.3% rate, and basically no risk. You will put your money in bonds unless you have a hot tip about apple sales. You might even sell some of your apple stock to buy more bonds.
  • refulgentis 3y ago
    If you're projecting a crash, I assume there's more to it than "bonds up stocks down". Is there?
    • s1artibartfast 3y ago
      Depends on what you are calling a crash. I didn't make any specific claim, but I expect stocks to continue going down as long as bonds are high. Berkshire Hathaway's largest position is apple. PE of 30, or 3.3% of value, and take on some risk. Alternatively, you can purchase bonds at a 5.3% rate, and basically no risk. You will put your money in bonds unless you have a hot tip about apple sales. You might even sell some of your apple stock to buy more bonds. If apple stock dropped 30%, then it still would yield less than risk free bonds. Edit: Berkshire Hathaway earnings are up 40% because they are buying bonds, not selling more product.