Why You Shouldn't Be Investing in Equities

Inflation protected bonds called tips have been around since 19 97. Earnings yield is in the 98 per centile of bad, and so you would not want to own very many equities based on that rule. You can't just say, i' mon to own this based on its expected return, or i'm just going to own that without thinking about its expected return. And really what we should be comparing is more apples to apples - either equities that well deliver this long term real return, a including a premium for the risk we're taking,. Or something else that gives us a safe, long term, real return.