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And since that correction hasn't happened yet, it obviously would hurt forward 30-yr returns just as badly, bringing them down from 6% to about 4%.

And yet the projected return for stocks is still 1.5% more than the US 30-Y treasuries. There is no alternative investment left. A broad basket of REITs (e.g. VNQ) yields 2.3%. Commodities are long-term deflationary. Which makes it even more important to identify individual securities that will outperform, but you know.

As a sidebar, Bernanke says that the Fed had nothing to do with the real rates being low, it's the darned savings glut from Asia. When headlines were saying US is exporting our inflation to Asia, turned out the Asians were exporting their deflation to us. Invert, always invert, as Munger says (via Jacobi.)
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