Stocks Consistently Outperforming Bonds

The chart above is from Bespoke Investment Group and shows the relative strength of the S&P 500 versus long term US Treasuries over the last year.  When the line is rising it indicates that stocks are outperforming bonds and vice versa when the line is falling.  Also, when the line is in the green zone it indicates that equities have outperformed Treasuries since the start date.  Conversely, when the line is in the red zone, it indicates that Treasuries are outperforming the S&P 500 since the start date.

Given the strength in equities this year, it isn't a surprise that stocks are outperforming long term Treasuries.  What is notable, however, is the consistency with which they have been outperforming.  As shown in the chart, if you purchased an equal amount of equities and Treasuries one year ago, there has not been a single day since then where the cumulative return on equities was less than what you would have gotten from Treasuries.  How's that for consistency!

Source:  Bespoke Investment Group

The information contained in this article does not constitute a recommendation, solicitation, or offer by D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.

 

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