For a contrarian, lots of good signs. The average investor is fleeing equities. Charts do look bearish, a lot of economic data is discouraging.
On the other hand, many U.S. corporations deleveraged during the recession, haven't reloaded, are profitable at current GDP levels. Interest rates are at zero. Looking out 3 years, can Treasuries possibly outperform equities? I wouldn't think so, but I'm not the brightest bulb in the package, maybe I'm missing something.
Financially strong, successful companies would appear a no-brainer compared to the anemic yields of Treasury bonds. We could see some modest earnings growth, even without much growth in the economy. That's the way I'm playing it. Has always worked in the past, maybe this is the one time, the world is truly ending.
