Bonds vs Stocks

[icm63]

Bonds(short:UST (2yrs)) are NOT following this stock market rally.

Either the stock or bond market is WRONG.

UST is not ralling with SP500. It does rally with stocks when its a healthy equity rally. THIS IS A MASSIVE DIVERGENCE : UST vs SP500

Normally people take money out of short term notes and invest in the stock market, this is not happening.
StocksVsBonds.jpg

[ThePythonicCow]

Re: Bonds vs Stocks

Normally people take money out of short term notes and invest in the stock market, this is not happening.

I was unaware that what "normal people" do has anything to do with current bond yields; am I missing something?

[jimmygu3]

Re: Bonds vs Stocks

Bonds(short:UST (2yrs)) are NOT following this stock market rally.

Either the stock or bond market is WRONG.

UST is not ralling with SP500. It does rally with stocks when its a healthy equity rally. THIS IS A MASSIVE DIVERGENCE : UST vs SP500

Normally people take money out of short term notes and invest in the stock market, this is not happening.

'09-'10 looks a lot like '03-'04 to my eye. Stocks bottomed and started upward while bond yields didn't do much for the first year. The difference is that the housing bubble rescued the markets in '03, but now we have a different animal: the government spending bubble.

-Jimmy