Stocks Against Bonds

Stocks and bonds have acted in near-perfect opposition for the last few years. Since the middle of last year, bonds have soared while stocks have had trouble going anywhere. The S&P 500 is still below its high from April.

As I’ve said, I think the run in Treasuries has come to an end. The bond bull may have other ideas. Just yesterday, the yield on the five-year Treasury came very close to its lowest yield ever.

I think the next move that’s most likely is a falloff in Treasuries while stocks rise. That’s similar to what we saw in late 2010.

Posted by on January 12th, 2012 at 9:49 am


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