the great rotation
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The Great Rotation Makes Stocks a Generational Buy
The greatest investing mistake you'll ever make is the one you may be about to make.
If you're not gearing up to get fully invested in 2013 and reap what will be generational rewards, you have no one to blame but yourself.
This is what you've been waiting for. This is your time. Here's how to do it and why.
We've probably reached the end of a 30-year bond market bull stampede. I was there at the beginning and fondly remember my trading desk gorging itself on fixed income.
Back then we filled our blotters with Ginny Maes, Treasuries and municipals, anything that had a double- digit yield. And back in 1982 there was plenty of income to be had.
But we weren't buying for yield, we were buying for capital appreciation. As interest rates fell our book of bonds got more and more profitable. I played that hand for 30 years.
But it's over. It's too late to get into bonds now.
Even if you got into bonds in the past couple of years and made some money, which I doubt, it's not worth getting in now with yields at record lows.
And if I'm wrong and there's life left in the bond rally, how much lower could rates go? The risk- reward parameters that govern good investments just aren't there.
What's likely to happen, and may have already started last week, is being called the "Great Rotation." The Great Rotation is an investment shift out of bonds and into equities.
