The BND was entered after selling IAU on 12/21/12, and is down 2.3%. The entire notion that equities out-perform bonds over the long-run is based on a single episode, from about 1950 to about 1970, when inflation accelerated unexpectedly. My view is that such scenarios are significantly under appreciating just how messed up global labor markets remain, but that is the subject matter for another piece I'm still working on.