Bifurcating Bell Curves

PIMCO execs can be found pimping for bonds by arguing that the normal distribution is dead – so equities are a ‘sell’ and safe government bonds are a ‘buy’.

I agree with the argument that the bell curve is useless in financial markets.  I’ve said so myselfYears ago.  In fact, my Honours Thesis was dedicated to this very subject, all the way back in 1989, when no one was listening.

What I don’t agree with however is that bonds are the “go to” in a bifurcated world.  Gold and silver and farmland and guns have always been the “go to” assets in times of extremis.  And these times are nothing if not extremis.

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