Buying Bonds “Makes No Practical Sense”: Doug Dachille

While doing research on First Principles Capital Management and Doug Dachille, I came across an recent video where Doug talks about the bond market. In the interview he states that it makes no sense to invest in the bond market since the yields on bonds are below the rate of inflation. Doug goes on to say that it makes no sense to give up consumption right now if the money you are saving will be worth less in the future. He states that one of the problems is that both people and the government have spent to much money and not saved enough. In his opinion, only the government will want to buy bonds with this low yields since they can afford to hold them to maturity and they don't have to worry about inflation.
I found two really interesting opinions on this video. First, when the interviewer asks him his opinion on stocks, he goes on to say that he doesn't really own stocks. His advice, which I found really good, was that he believed that you should stick with what you know and understand. He says that when you are investing in something you don't really know it is very possible that you will end up making a wrong decision. Another interesting point was that when asked about the best investment vehicle in fixed income, his response was TIPS since they offer protection against inflation. This reminded me of early classes when we discussed this investment option.
http://screen.yahoo.com/buying-bonds-makes-no-practical-sense-doug-dachille-28853434.html