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>> That's probably why you see very few people who've studied this issue suggest a 100% fixed income portfolio. <<

True. Though if the long bond hit 14% like it did in 1981, it would be mighty tempting. It's unlikely inflation would run that high, that long.

But if the long bond does hit 14%, then the market is saying exactly that, that it thinks there is a good probability inflation will remain that high that long. Of course the market is often wrong, but predicting when and in what direction is no simple matter.
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