Bond yields have fallen to their lowest levels in 14 years, and fixed-income investors are filled with optimism. The total return on bonds is higher than the total return on stocks, and almost everyone seems to think inflation is under control.

From what we can see, this bull market in bonds will continue a good while longer. The economy has no strength, and it will continue to lack any driving force as it continues to adjust to the end of the Cold War and the over-leveraging of the 1980s.

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