May 31, 2017

Bonds are materially overvalued

"The 10-year yield is typically in line with the nominal GDP, which is real GDP plus inflation. If you assume 2% inflation and 2.5% growth, nominal GDP would be 4.5%. Instead, the 10-year is at 2.26%. That gives you a sense of how overvalued bonds are, relative to historical averages." 

via marketwatch