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1. Could be.

2. It was only a month ago that bonds looked much better than the S&P. Not sure if this link adds the S&P.

3. Do you think we've hit our last European or US fiscal crisis?

4. It IS a good time to shorten the corporate duration IMO.

5. I've been wrong SO LONG about inflation I'm scared I'll never be right. Illogical I know, but five years is a LONG time to be wrong about inflation.

6. Bill Gross of Pimco sounds the same warning. Unfortunately the conclusion should result in both a bond and stock decline.
Investment conclusions
Investors should be alert to the longterm inflationary thrust of such check writing. While they are not likely to breathe fire in 2013, the inflationary dragons lurk in the “out” years towards which long-term bond yields are measured. You should avoid them and confine your maturities and bond durations to short/intermediate targets supported by Fed policies. In addition, be aware of PIMCO’s continued concerns about the increasing ineffectiveness of quantitative easing with regards to the real economy. Zero-bound interest rates, QE maneuvering, and “essentially costless” check writing destroy financial business models and stunt investment decisions which offer increasingly lower ROIs and ROEs. Purchases of “paper” shares as opposed to investments in tangible productive investment assets become the likely preferred corporate choice. Those purchases may be initially supportive of stock prices but ultimately constraining of true wealth creation and real economic growth. At some future point, risk assets – stocks, corporate and high yield bonds – must recognize the difference.

VH is probably NOT the place for this discussion (said AFTER I entered in ;-)

RYR Home Fool
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