When growth is slower-than-expected, stocks go down. When inflation is higher-than-expected, bonds go down. When inflation is lower-than-expected, bonds go up.

There is slow growth, but it is positive slow growth. At the same time, ratios of debt-to-incomes go down. That's a beautiful deleveraging.

There are two main drivers of asset class returns - inflation and growth.

What I'm trying to say is that for the average investor, what I would encourage them to do is to understand that there's inflation and growth. It can go higher and lower and to have four different portfolios essentially that make up your entire portfolio that gets you balanced.

It all comes down to interest rates. As an investor, all you're doing is putting up a lump-sump payment for a future cash flow.

Both from the standpoint of stocks and bonds, an investor wants to go where the growth is.