Interesting stat form Bank of America - there have been 511 rate cuts around the world since June 2007. The surge of liquidity has not abated after five years, yet there is limited inflation in the G7. In fact, inflation has been going down not up. Emerging market inflation is higher but well under control versus historical levels. There is no value in bonds because governments do not want them to have value.
Talk of the Great Rotation to equities has risen and fallen since the beginning of the year. Much of this change in sentiment is based on the investment public not truly accepting that governments have only one policy choice that they like - cutting rates.
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