Treasury Yields Below Inflation May Last Years: Chart of the Day

Against a backdrop of negative real bond yields, I am bewildered that investors (lenders) are pouring into US Treasury bonds in a (perceived) flight to safety.  To me, this flight is misguided, and it guarantees destruction of portfolios.  In other words, the herd will be slaughtered--again.

Here's a Keynes quote:  "Markets can remain irrational longer than you can remain solvent."

In essence, forecasts of a bond market collapse are early--not wrong.  See the NASDAQ bubble bursting in 2000.  See the subprime mortgage bond market bubble in 2007.

http://www.bloomberg.com/news/2012-12-14/treasury-yields-below-inflation-may-last-years-chart-of-the-day.html