Total return numbers tell the story.

Over the latest three years the more equities you owned, the better you did. Hiding in bonds (from poor worldwide macro-economic conditions)  backfired as fixed income suffered lackluster, or even negative returns.

The generational low interest rates set in the spring of 2012 may never be seen again. Rising rates have already devastated long maturity bonds even though coupons remain well below historically average  levels.

The already painful damage to bondholders may be just getting started.

It is not too late to dump fixed income. Why hold on to 1% – 4% paper when a continued rise in rates could wipe out 15% or more of your principal? 30-year T-bonds gave back more than four years of interest payments (in mark-to-market value) over the past twelve months.