Because the margin on bonds is only 10% so there might not be as much capital as you think to flow into equities. You stated 15% interest rates.....if that happened the losses on bonds would be so great and 10% margin would create such massive margin calls and the liquidity crisis would erupt. The only asset that could be liquidated to met such massive margin call would be stocks, not to mention the economy would come to a complete stand still and there would be no earning growth at all....as a matter of fact earnings would contract quite a bit. You can buy stock here if you want.....i will sell them to you....i am net short at these prices.
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