In terms of long term allocation, I wouldn't touch equities with a ten-foot pole!
That being said, with the amount of currency being created every second, all prices will continue to rise exponentially, and the proximity of financial assets to the source of this inflation (the Federal Reserve) will continue to favor their valuations!
Would a uncontrolled rise in treasury yields lead to a sizeable correction in equities and a rising VIX? Absolutely.
Is it likely that the Federal Reserve would intervene to an even greater extent than the 2008 and 2019 Global Financial Crises? Absolutely.
Therefore, I believe the long term trend of volatility in all prices is much, much lower...
That being said, with the amount of currency being created every second, all prices will continue to rise exponentially, and the proximity of financial assets to the source of this inflation (the Federal Reserve) will continue to favor their valuations!
Would a uncontrolled rise in treasury yields lead to a sizeable correction in equities and a rising VIX? Absolutely.
Is it likely that the Federal Reserve would intervene to an even greater extent than the 2008 and 2019 Global Financial Crises? Absolutely.
Therefore, I believe the long term trend of volatility in all prices is much, much lower...