COVID-19 UPDATE: Since 2009, of $3.1T retail inflows into financial assets, 94% into bonds. What equity bubble?

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STRATEGY: Since 2009, of $3.1T retail inflows into financial assets, 94% into bonds.  What equity bubble?This is our first commentary for the new year.  And perhaps, this is also the best time to start with a decade "look ahead" at the 2020s (weak pun intended).  It is perfectly understandable if someone is apprehensive about asset returns in the next decade for multiple reasons -- sub-par growth since 2009 (secular weakness?), galactic intervention by Fed (money printing) and lack of reflationary dynamics (are we Japan?).We see 4 reasons equities will perform surprisingly well over the next decade:- no bubble in stocks --> "deflation" and "calamity insurance" outperformed stocks in the past 2 years, by a wide margin- no bubble in stocks --> of $3 trillion of household flows into financial assets, bonds got 94%, a mere 6% into equities, or $183 billion- no more deflation --> the sheer demographic influence of millennials is likely to push CPI higher- best performing reflation assets --> real estate and equities, large-cap, small-cap and EM- extra credit --> Bitcoin is an inflation hedgeWhile stocks managed to produce gains in 2020, it is more useful to look at the z-score (# standard devia...

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