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This is the reason for a soaring stock market. Bonds as an asset class, have almost ceased to exist.

For pension funds, that need to generate a return, where do you go? Into dividend paying stocks, with a gamble on capital gains to boot.

It would be an interesting exercise to see inflows of stocks to pension funds. The pension crisis is written about, but so far has stayed fairly low key. At some point, it is going to become a major problem.

Possibly, people working longer, refusing to retire are the first signs of this issue. It is definitely something that I am increasingly aware of, and planning for.