I strongly believe that more favorable return/risk prospects will emerge over the course of the coming market cycle, and that locking in elevated, distorted prices and depressed yields in the belief that “the Fed has our back” is a speculative mistake, a misguided superstition, and an analytical error.

To embrace present market and economic data at face value–without recognizing that generating this data relies on enormous monetary distortions and government deficits–is like believing that you’re Louis XIV just because you’ve built a massive cardboard Palace of Versailles in your front yard.