When Gentlemen Prefer Bonds?
In the financial crisis of 2008, bonds outperformed stocks as investors fled to safety. Not surprisingly, gold also responded to the search for safety, bottoming well before stocks and outpacing all other asset classes in the following three years. As perceived risks declined, especially after the end of the euro crisis, gold fell and stocks also outperformed bonds.
When Gentlemen Prefer Bonds?
In the financial crisis of 2008, bonds outperformed stocks as investors fled to safety. Not surprisingly, gold also responded to the search for safety, bottoming well before stocks and outpacing all other asset classes in the following three years. As perceived risks declined, especially after the end of the euro crisis, gold fell and stocks also outperformed bonds.
Are we now crossing over into another period of heightened risk perceptions, where bonds outperform stocks and gold outperforms both? This weekly chart shows that the US Treasury bond has broken out against the S&P500 after nearly three years of relative decline. The 50 week moving average has been surmounted. A sign of things to come?
