Title: Is The Bond Market In A Bubble? | Seeking Alpha
Headings: Is The Bond Market In A Bubble?
Is The Bond Market In A Bubble?
Summary
Bond Bubble? What Bond Bubble?
The Forces of Deflation are Real
Is There Any Value in Bonds at These Levels?
Why I Believe Everyone Should Own Some Bonds
EB Investor

Content: 10-Year Bond Yields
Source: Bloomberg. Monthly data as of December 15, 2014. Why I Believe Everyone Should Own Some Bonds
Many people continue to get the bond market wrong, telling investors to stay out of bonds, while long-term (NYSEARCA: ZROZ) Zero coupon US treasury bonds have provided a 20%/year return during the past five years. It is also important to note that the velocity in the economy remains at the lowest level in over 55+ years, at 1.5% on M2. With such low velocity, inflation is not a concern. Investors should be concerned about the deep deflationary spiral that is engulfing the developed world from Japan to Western Europe. Rates have gone lower in the 30-year and the 10-year, and will likely continue lower, as the yield curve continues to flatten as the globe de-levers. From my perspective, the risk is enormous during this period.