tvb

The Real Secret to Fractional Banking

You have to use overall inflation to calculate real rates, not cherry-pick the most appreciated asset classes of the past year (e.g. gold). If you are going to arbitrarily chose an asset class to calculate real rates, try using the deflated housing prices of the past year. Makes just as much sense as using gold (none). You could have made your same arguments a year ago -- and those who invested in 10 year treasuries last year (at around 5% yields) made substantial returns -- particularly compared to those who lost tons in the equity (around 20% from the peaks) and housing markets. I'm not saying that treasuries are attractive now (I don't think that they are), but your analysis is flawed.