Thursday, January 02, 2014
...I’ve been thinking in seven-year periods lately (e.g., GMO), so I thought at the turn of the year I’d go back that far and see from where we have come.
The three lines represent long Treasuries (TLT), corporate bonds (LQD), and stocks (SPY). I was going to use one of the big junk bond ETFs to show lower grade credit risks, but neither HYG or JNK was in existence at the end of 2006. (Think about that.)
It is amazing that these three very different vehicles ended up on top of each other after seven years. Within 1.27%, to be exact.
Seven years, three ways to get to the same place. (Chart: Bloomberg terminal.)
Posted by Bud Fox at 11:49 AM