I am an incorrigible bull, although I will be the first to admit that I have been somewhat chastened by the severity of the bear that hit the Kenyan market this year.

This has made a lot of investors shift the bulk of their investment portfolios away from stocks into bonds, cash and in the case of Kenya into real estate.

But while this may be OK as a capital preservation technique, it is unlikely to yield superior returns to stocks, especially with respect to bonds/cash. In Kenya, most of us are convinced that stocks will stage a major rally after the next elections. But even within the next 12 months, we already have shares that will give returns of close to 10% in dividend yields. This is at least 1/2 the rate that long dated government paper will get you, without the upside.

Apparently, even Dr Doom (Marc Faber) is now convinced the same will happen in other markets.

See this link...

http://www.cnbc.com/id/45046095

Dr. Doom is looking at a duration of over 10 YEARS (Stocks Beat Bonds Over 'Next 10 Years': Marc Faber)

Every investor knows that over such a duration, stocks will beat bonds.

Actually Savvy investors are putting their money in TBills (not TBonds) waiting for the stock market to hit a bottom when they will make a comeback