Many experts have cut their ties with bonds, as yields are at near-record lows amid a decline in confidence globally. But bonds do look set to outperform equities again. There have been a number of famous investors who have been prepared to stand up and warn about the perils of investing in "safe" government bonds. It comes as investors around the world have tipped more than $US190 billion into global bond funds this year, according to EPFR Global, a data company. Close to $US1 trillion has gone into bond funds since the start of 2009. But earlier this year the successful value investor and billionaire Warren Buffett wrote that bonds "should come with a warning label" because ultra-low interest rates did not compensate investors for the erosion of their wealth through inflation.
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