Big Picture Note: the more interesting/important points are made in the comments linking to some earlier Mebane Faber articles which suggest that this is not a point to worry about at this stage of the US market I wouldn't mind finding some other asset classes that show positive real returns but its hard. A 9% increase in bonding holding is not significant by any means. A 60/40 (equity/fixed income) is considered moderate. Our equity exposure is currently under 40% based on risk tolerance and financial goal. The current or projected political or financial climate does not play a significant role in our current asset allocation. __________________ May we live in peace and harmony and be free from all human sufferings. I must be a premature member of the dirty old man club, because I tend to think along the lines of Ha: watch valuation more than anything. The junk bond (and pretty much all bond) market is getting over-valued, but I don't as of yet see it in the equity market. Quote: Originally Posted by samclem Even if stock prices stayed flat or dipped, wouldn't your dividend yield in equities come pretty close to matching your bond yields? A dip in stock prices is just that--you'll be even again when they go up. I just can't see a great case for bonds right now. I'm with these guys. I also suspect that as a result of time alone the overall economy will improve in the next administration (no matter who