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Well, maybe. I don't follow Europe too closely, but, based on the NPR stories I've heard, the PIIGS don't seem to be doing all that well, and there was a recent (non-NPR) comment that Germany's bonds might be down-rated. China is so-so. EM might be so far down that it has to rise, but the timing isn't certain (and the article has a 6 month window). I'd be VERY happy with 5% for the rest of the year. Could this guy just be trying to increase the churn for their accounts?
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Reference:
June Report