Yields contin…

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Yields continue to drop with euro and oil.  It makes sense.  The strong euro has long supported high oil prices.

It really looks like global de-leveraging will end soon.  Obviously, if governments keep bailing out banks, the banks will continue to contract the money supply.  Yet, once the bailouts end, there really is no incentive to de-leverage.

Once pensions and social security are trimmed, governments will have incentive to leverage/inflate again to collect tax revenue.  Is the time coming?  Maybe not today, but it has to be somewhere between today and 10 years from now.

i’m looking at 60 equity – 40 fixed on the short end of the yield curve for now.

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