Warren Buffet was recently interviewed by CNBC. He noted that investors are reaching for yield, a human response to low interest rates but “stupid.” It always ends in tears. What he means is investors are buying riskier and riskier investments to compensate for the low interest rates and low dividend yields. 

Buffet said if you live in a 1% interest rate world adjust your spending appropriately. He said that when people and corporations try to adjust their investments to compensate it ends poorly. 

Using a sports metaphor – “take what the defense gives you.” Where I differ from Mr. Buffet is that most people don’t have to adjust their lifestyle to low interest rates. These things are cyclical. Adjust to the market overvaluation and undervaluation that is the winning formula. Basically, be opportunistic with your investments like you would with anything else. We cover this extensively with our regular Market Value Updates.

Please don’t hesitate to contact me with any questions.

At Bartley Financial, we care about way more than your finances. We care about the life you’re trying to live; finances are just a piece of that. Call us anytime if you need fresh ideas for your finances or help in achieving your goals. We’re happy to help!