Inflation, Asset Prices and Real Returns [Updated]

Update - Nobel Laureate Robert Shiller - Why Land and Homes Actually Tend to Be Disappointing Investments
http://www.nytimes.com/2016/07/17/upshot/why-land-may-not-be-the-smartest-place-to-put-your-nest-egg.html

Are Bonds Still a Good Investment?

WSJ Jason Zweig notes:

http://blogs.wsj.com/moneybeat/2016/07/15/bonds-arent-as-wretched-an-investment-as-they-seem/

“With bonds producing near-record-low levels of income worldwide, there’s never been a worse time to invest in government and corporate debt. You earn next to nothing now and, if interest rates finally rise, you will get clobbered later.

That’s the conventional wisdom, and it’s wrong.

With 10-year U.S. Treasury securities yielding just under 1.6%, a $10,000 investment produces a paltry $158 in annual interest income. But, properly measured, the returns on bonds are higher than they have often been in the past. And, for many bond investors, rising rates will turn out to be a blessing, not a curse. Finally, even if yields go lower from here, bonds will still provide valuable insurance against losses in the rest of your portfolio.”

Are we too worried about inflation?
http://www.bloomberg.com/view/articles/2016-07-14/overcoming-our-inordinate-fear-of-inflation