From Bloomberg:
Buying 30-year Treasuries is returning more than stocks for the first time since Jimmy Carter was president.
For three decades, owning equities in developed countries earned more than “on-the-run” 30-year government bonds. The advantage reversed after $36 trillion was erased from equity markets since October 2007 amid the first simultaneous recessions in the U.S., Europe and Japan since World War II.
See the chart here.
It's just the latest jaw-dropping feature of our terrible economy. The ongoing fall in stocks is obviously scary, but Bloomberg says 30-year Treasuries returned 41.2 percent last year for their best year since 1998 according to data from Merrill Lynch. Is there any way that we aren't developing a bubble in bonds right now?
Reader Comments Read all comments (1)
Muser of NM 2:43PM March 06, 2009