Kevin O'Leary says that investors will get hurt if they are in long duration bonds.
His comments came hours after the Federal Reserve raised interest rates.
"I wouldn't be buying bonds here," O'Leary said on CNBC's "Squawk Box Asia"
Capital will not be deployed at 3-and-a-quarter percent for the next decade. He said that it was a horrible return when the markets had traditionally given him 6 percent.
Right now, I favor equities, particularly the 100 companies within the S&P 500 that have very strong balance sheets
Is there anything on the scale that makes sense? "Not yet", O'Leary stated.
The 100 companies in the S&P 500 that have very strong balance sheets are my favorites right now. The investor said that the dividends have not yet seen the so- called recession.
As investors scramble for safety against a backdrop of growing concerns, global markets have fallen in recent weeks.
The S&P 500 fell into bear market territory earlier this month and is still down more than 20% this year.
He doesn't think there will be a "dramatic recession"
The investor on the show said there were lots of people talking about the end of the free world and all of the other things.
The consumer has been given so much of it in the last three years that I am not there.
The economy can sustain rate hikes by the central bank.
The historically low is 4% if the Fed ends up there. That is something we are talking about.
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