Let slip the vigilantes of bonds
Let slip the vigilantes of bonds.
Enough is enough. Zero to negative interest rates are the enemy of the industrious. Distorting the reality of risk management. We cannot prudently asset allocate our savings and retirement accounts. We are not matching the required cash flows of our defined benefit programs to the asset classes available. The endowments cannot meet their mission statements without creating decay for future decades. Our future generations are not being taught how to be good stewards of what they do have. We are writing governmental subdivision checks that we cannot make good without extraordinary economic growth and tax increases with 2nd, 3rd, or 4th standard deviation returns, with all the geometric risk associated with those choices. Have you priced the cost of equity or fixed income puts? How can a citizen afford that? Especially when the citizen is seeing a much-reduced inflation adjusted return on their fixed income allocation? Get the Fed out of the superhero business and risk that our fiscal policy lawmakers show us what they can do in generating programs that work and shutting down programs that do not work. Have we become so afraid, that we are unwilling to take responsibility for ourselves? #riskmanagment#deflation#economy#inflation