Each morning we receive bond inventory lists from all the major brokerage firms. Over the past year we have noticed that the inventory of “quality” product has decreased dramatically along with yields. Bonds that yielded over 4% a year ago now pay 2.5%. Fearful investors traded equities for bonds and the resultant demand has left our inventory lists sparse. With cash returns at less than 1% and three year GIC’s at less than 3%, we believe the pendulum will soon swing the other way. Investors who need to live off the income from their portfolios will find it hard to justify meager returns. We expect the blue chip dividend paying stocks, many of which yield over 4% to come back in fashion, as investors will have no choice but to trade safety for returns.