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Warren Buffett told a Conference, he could not imagine anyone with bonds in their portfolio when they might have actions photo: GETTY

Curious that Mr. Buffett performs a practical imitation of Cassandra - she cursed so that she could predict the future, but no one would ever believe it.

Here's the buffet, speaking of the week the Fortune most women Summit last: "it is clear that stocks are less expensive than bonds."I can't imagine anyone with bonds in their portfolio that they can have actions... but people do because they have no confidence. ?

And this is what everyone did.According to Morgan Stanley speed inputs of bond funds is even made Beaver retail intakes of capital at the height of the technology bubble in 2000-$410bn (￡ 256bn) in the 12 months to April 2010 United States versus $340bn actions during the year September 2000.

Here, too, investors may not get fairly fixed revenu.Selon association management, net sales of multi-market and obligations of both exceeded 600 m ￡ in August.Only funds return absolute were anywhere near these funds entrées.Le staple British equity, all UK companies, saw 291 m ￡ buyback and even the previously popular Asian AETERNA sector triggered a lean ￡ 22 m.

So it's a bubble waiting to burst or a logical choice for investment in a deflationary world, where interest rates would stay low for more that Governments adopt strategies more desperate to prevent collapse another?

The case for bond prices remain high received a boost in recent weeks as the speculation has grown that the Government is considering a second series of quantitative easing. Yet more money to buy bonds printing creates a buyer of last resort and substantiate the Treasury bond prices at high concentrations today.

Indeed, the discourse on Wall Street has turned into something that the US Government has not used since the second World War when a performance target for government securities with the implied promise that the authorities would buy everything they had to keep the cost low money.

Ben Bernanke, Chairman of the Federal Reserve, referred to in this policy in his famous speech of "Helicopter Ben" 2002 when he recalled the financial markets of the ultimate weapon of the Government in the fight against deflation - imprimer.Il press is really no wonder that the price of gold is on a tear.

For some reasons, however, I am not convinced that the theoretical possibility that interest rates could go even lower Japan the makes a good argument for buying bonds at today's levels.

Firstly, to return to finance flows, extremes of purchase in the past been a follows very good indicator of future performance.Equity flows represented around 4pc total assets in 2000, just like the bursting of the bubble.At the same time, he had very significant outflows in advance just binding to a gathering of high bond market.

My second reason for caution is illustrated by the graph, which shows how little reward investors receive loans of money for the Government of the United States (and Governments UK, German and Japanese for that matter).Accept this kind of performance makes sense only if you believe that the u.s. economy is mortally wounded and inflation dragon was tué.Je do not believe in a thesis.

History shows very clearly that invest in bonds when starting performance is low resulted in returns of well-below average if and when rates are beginning to augmenter.Entre 1941 and 1981, when the interest rate is finally over an extended period, bond total return was two and a half lower when the starting point was a performance of the 3pc when he started over this niveau.Investir where yields are low stacked chance against you.

My final reason for caution is that it is not necessary to put all your eggs in the basket liaison.Autour a quarter of FTSE 100 shares are producing more 4pc gilts income is less than 3pc.Plus income and potential so that it can increase over time trop.Je am with Warren on this subject.

tomrstevenson@fil.com

Tom Stevenson is a Director of Fidelity Investment Managers.Les investment views expressed are his own.

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