All fair points. Although that article is talking about a looming sell off in treasury bonds. I certainly agree treasuries are not very attractive at current prices. I wouldn't advise buying treasuries now, which are yielding about 2.5% at best, although with allt his government intervention, rates are likely to stay extremely/articficially low for quite some time. My whole argument was for the corporate bond market vs the corparte stock market. You say a crash in the bond market will be good for stocks. I disagree. If there's a crash in the overall bond market (not just a treasury sell off), it will be due to massive corporate defaults, which will be a terrible thing for stocks in general. You keep going back to the traditional assumption that bonds=safe but low returns. I'm trying to make the point that bonds, while still safer than stocks, currently offer superior returns as well. This has historically almost never been the case.
Flagpole wrote:
Also, take a look at this --
http://money.cnn.com/2009/01/02/markets/bondcenter/credit_market/index.htm?postversion=2009010210It's something I've been saying for a little while now. When the bond market crashes (and it will) it will mean VERY good things for the stock market and consumer confidence and getting out of this recession).