I always enjoy Bill's thoughts. He is often times referred to the Warren Buffet of bonds. This one I think is the best one I have read in the last six months and unlike some of his thoughts I strongly agree. His write-up covers inflation. Highly recommend reading it.
I’ll tell you another area where we’ve been foolin’ ourselves and that’s the belief that inflation is under control.
A readjustment of investor mentality in the valuation of all three of these investment categories – bonds, stocks, and real estate – would mean a downward adjustment of price of maybe 5% in bonds and perhaps 10% or more in U.S. stocks and commercial real estate.