chart: Stock/Bond Ratio

Matter government bond is stronger than S&P 500?

by Chris Kimble | Jun 26, 2017 | Kimble Charting

Stocks have done well this year and the past 90-days. Which would you rather have owned the past 90-days and Year to date, the S&P 500 or Bond fund ZROZ? Below looks at the performance of the S&P and ZROZ over the past 90-days.

Over the past 90-days, bond ETF ZROZ has nearly doubled the returns of the S&P 500. Despite the S&P doing well this year to date, ZROZ has done even better than the S&P 500, gaining around 3% more. Below looks at the Stock/Bond Ratio (SPX/ZROZ) over the past few years.

Courtesy of KimbleCharting

 Does it matter that bonds are stronger than stocks? Do bond traders know something that stock traders don’t?
Maybe it doesn’t matter until it matters applies to stock & bond performance of late! So far, the bond strength the past 90-days, doesn’t seem to matter to the stock market. If the stock/bond ratio would happen to keep heading south, in time I humbly feel it will matter and will send an important message, if it does.

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This has been posted for Educational Purposes Only.   Do your own work and consult with Professionals before making any investment decisions.  
Past performance is not indicative of future results