Thursday, January 02, 2014

three ways

14 0101 three ways
...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.)

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Lunch is for wimps

Lunch is for wimps
It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.