The Federal Reserve (Fed) is on the side of the stock investor and ultimately if Fed is successful, the thing they are buying, bonds, will suffer the most.
You believe the Fed cannot prevent deflation and that we’re going into deflation, that is the only reason you hold bonds.
If you believe that the Fed can’t generate growth, but they can prevent deflation, then the choice becomes easy—which is that stocks are yielding as much as bonds.
A global portfolio of stocks is as good a bet against bonds as it has been in 40 to 50 years.
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