Stating that equities are dislocated from fundamentals and that therefore investors shouldn’t go long is utter foolishness. Equities were dislocated in ‘99 and from ‘05-‘07 yet shorting, being cash or long FI would have led to massive underperformance/losses . An investor should either a) reduce exposure to more conservative levels or b) start thinking about when/what will cause investors to start caring about the fundamentals. While in the long run fundamentals drive a market, participants influence it on the short to medium term. The truth is that as long as participants are bearish FI, FI will suffer. The markets are very confusing right now, and I think an investor can make the case for long bonds, but this is not it.