John Hussman weighs in with his customary common sense, here:
'Quite simply, the reason that pension funds and other investors hold more bonds relative to stocks than they have historically is that there are more bonds outstanding, relative to stocks, than there have been historically. What is viewed as “underinvestment” in stocks is actually a symptom of a rise in the gross indebtedness of the global economy, enabled and encouraged by quantitative easing of central banks, which have been successful in suppressing all apparent costs of that releveraging.'
His regular Tuesday column is like a weekly appointment with a psychiatrist. The madness of a week melts away under his penetrating illuminations.
