Don’t Buy That Treasury Bond

``In a Wall Street Journal article last week, the Wharton School’s Jeremy Siegel pointed out that ten year inflation protected securities (TIPS) with yields under 1% are selling at a PE multiple equivalent of 100 times, the same valuation that dotcom stocks saw a decade ago (click here). Bonds with four year maturities have negative real yields. The last time this happened, in 1955, ten year bonds brought in an annual return of only 1.9% for the following decade. The potential capital losses for these securities now loom large.''