click for a larger chart

Source: Bianco Research


One of the things that this rally has managed to — finally — accomplish is that it has given stocks a (short term) performance advantage over bonds.

The two 2000s crash had made bonds the superior asset class for various time periods — the advantage was to fixed income for as long as 40 years.


Bonds Beat Stocks: 1981-2011  (October 31st, 2011)

S&P500 Total Return vs Bonds 1800-2012   (September 12th, 2012)

Bonds for the Long Run (August 9th, 2012)

Stocks vs. Bonds  (March 28th, 2009)


Category: Fixed Income/Interest Rates, Investing

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “Stocks Beat Bonds (Finally)”

  1. A7LB says:

    Do these stock index values include the companies which
    were removed from the index due to low stock price?

  2. constantnormal says:

    And if you extend this chart back a bit further? I think that 3 years is likely to prove a head fake … or not …

  3. [...] A look at how major asset classes are performing.  (Capital Spectator also Big Picture) [...]

  4. Old Rob says:

    Ah yes! The great Rotation from those in the know to those with some ‘dough’.

  5. mad97123 says:

    Falling interest rates have been a wonderful thing for all investors. Can’t imagine what the opposite will bring. The only question is will we find out in 10yrs after a ‘U’ bottom, or will we findout sooner with a “V”?

  6. Pantmaker says:

    Bonds will fall and stocks will fall. Bonds will eventually prevail as those who have shown patience will finally be able to secure decent rates for their money. Those early to the party (buying now) will have the frustration of crappy returns (rock) and falling bond values (hard place). The either/or stocks bonds meme is dead.