For the past few months I have read many articles, reports and media coverage expecting a huge equity bear market to emerge? I am not convince once again despite the out performance this year. If you look at the reasons given by many experts out there predicting the end of the bond bull market many years ago; you will see the similar arguments now on equity markets. Small groups cited technical readings, some citing emerging market weakness lead by BRIC while a large group out there cited valuations. My philosophy to investing have been centered around relative value and opportunity cost of capital. Modern capital cares little on rising interest rate effect on equity valuation just as it ignore the valuation when interest was on decline for the past decades. This is because modern capital ignores valuation in the long term but instead concentrates on relative performance in the short term despite many participants continue to use medium/long term valuation to predict richness/cheapness of investments. Forward yields on Global Equities has been trading at the widest spread to government bonds for a long time and the time has come to narrow as capital now sees potential of relative out-performance. Even if my analysis is wrong, try using traditional financial methods of “Present Value” back the cash flow of equity yields versus bonds. Can you see how high the floor is? Hence, don’t jump, sit back and let the rising floor lift your returns.