'A bleak future': Is Warren Buffett wrong for saying investors should forget about bonds?

Legendary investor Warren Buffett raised a few eyebrows recently after claiming that fixed income investors face "a bleak future". In a recent letter to Berkshire Hathaway investors, the Sage of Omaha railed: "Bonds are not the place to be these days. Can you believe that the income recently available from a 10-year US Treasury bond - the yield was 0.93% at yearend - had fallen 94% from the 15.8% yield available in September 1981?" He later added: "Some insurers, as well as other bond investors, may try to juice the pathetic returns now available by shifting their purchases to obligat...