Asness: I'm more bullish on bonds right now

Billionaire investor Cliff Asness recently said in an interview with Bloomberg TV that he thinks the current stock market is overvalued, while the bond market is relatively reasonable, so he prefers to invest in bonds rather than stocks.

Asness is the co-founder of AQR Capital Management and a leader in quantitative investing. He pointed out that in the past 30 years, the valuation of the U.S. stock market has increased a lot, but the future economic growth may slow down, while inflation and interest rates may rise, which means that the return rate of the stock market will decline.

He said: "Bonds are starting to look pretty, pretty reasonable. Equities on the other hand, globally, but particularly in the U.S., kind of look like they're whistling past the graveyard."

Asness also warned that if inflation does not fall as expected by the market, the stock market may face a macroeconomic shock, because the stock market and the bond market have inconsistent expectations for the economy.

He said: "The biggest risk is probably macroeconomic. There is a risk that the macro economy delivers results that markets are still woefully unprepared for."

Asness's view is contrary to some Wall Street analysts, who think that the stock market still has room to rise, while the bond market faces pressure from rising interest rates.