Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Ms. Baby Boomer who wrote (91356)	4/2/2017 9:04:13 PM
From: GROUND ZERO™	1 Recommendation Recommended By Hawkmoon Respond to of 218570

Look like the guy has problems feeling respected... GZ

To: Ms. Baby Boomer who wrote (91356)	4/2/2017 9:17:50 PM
From: GROUND ZERO™	Respond to of 218570

Stock-To-Bond Ratio Back At 2007 Peak As 1Q17 finishes with a gain in the books, *the stock to bond performance ratio has also broken to a new cycle high,* elevating to levels not seen since mid-2007. Our measure of the stock to bond ratio measures the total return of the S&P 500 relative to that of the JPM 10 year treasury total return index. *When the blue line rises, stocks are outperforming bonds, and vice versa.* While a rising stock to bond ratio isn’t all that surprising, especially in a bull market, the recent acceleration is not commonplace. Over the last two quarters stocks have outperformed bonds by 31%, which is highest level since 2011. Only in 1999 did stocks outperform bonds by a wider wide margin over a two quarter period. So what does this simple chart tell us? Over short periods of time, the relative performance of stocks and bonds fluctuates around around a mean of about zero. When stocks outperform bonds by a large amount over a short period, that period of outperformance reverts back towards zero, either through time or performance. While we can’t possibly predict the performance of either stocks or bonds, what we can fairly confidently deduce is that further stock strength relative to bonds is unlikely over the coming months. zerohedge.com GZ