Warren Buffett tells CNBC's Becky Quick that stock indexes will go a "lot higher" in her lifetime and advises investors not to pay so much attention to short-term moves.
Buffett said that bonds are a "terrible" investment right now because they are "priced artificially" high due to the Federal Reserve's massive asset buying program and could lose people a lot of money when inevitably interest rates start to rise. He doesn't know when that will happen and he doesn't know how much rates will rise, but he's certain they will be going up eventually.
Stocks, he said, are higher but not "ridiculously higher." They were "very cheap" are few years ago and are now "reasonably priced."
