Wednesday, December 09, 2009

Are bond returns telling you to buy stocks? 

You can always find a pattern in chaos as any technical analyst knows, but this chart from UBS struck me as at least a little bit interesting. Bonds have returned more than stocks over the last twenty years. Just fine. It turns out, though, that you would have done well to buy stocks on the two previous such occasions. Is that good advice today? Spin your theory in the comments.

When bonds out perform stocks


By Blogger Charlottesvillain, at Wed Dec 09, 02:27:00 PM:

Dude, don't you know that "past performance is no indication of future return?"  

By Blogger Don Cox, at Thu Dec 10, 04:22:00 AM:

"You can always find a pattern in chaos"

Just like you can always find a face in random cracks on a wall.  

By Blogger jashmore, at Thu Dec 10, 07:37:00 AM:

In situations like this, bonds are being subsidized by Fed buying. When that ends, the returns will drop. Of course, stocks will drop as well, so there is no safe place.  

By Blogger Charlottesvillain, at Thu Dec 10, 10:42:00 AM:

Well, there's always "beans, bullets, and bandaids."  

Post a Comment

This page is powered by Blogger. Isn't yours?