About a year ago, I pointed out a fashionable trend: Some pundits were saying that long-term interest rates couldn't go much lower. Since then, the yield on a 10-year Treasury bond has fallen from 3.18 to 1.65 percent.
The lesson: Don't try to time the market. My own asset allocation remains 60 percent stocks, 40 percent bonds, with wide diversification in each category.
I am a professor and chairman of the economics department at Harvard University, where I teach introductory economics (ec 10). I use this blog to keep in touch with my current and former students. Teachers and students at other schools, as well as others interested in economic issues, are welcome to use this resource.