The venerable former Federal Reserve Chairman Alan Greenspan has spoken out to warn markets that real long-term interest rates are unsustainably low and when these rise with inflation, bonds will be adversely affected.  While the consensus of Wall Street forecasters is still for low rates to persist, Greenspan is not alone in his prediction that any increase in interest rates will happen quickly.  Investors will do well to heed Greenspan’s warning against the backdrop of monetary accommodation coming to an end, with the Fed widely expected to announce plans for unwinding its $4.5 trillion balance sheet and central banks around the world talking about scaling back stimulus.

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