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Can the Stock & Bond Market Rallies Continue?
June 04, 2014 at 19:00 PM EDT
Last week, both stocks and bonds rallied. Bond yields fell to an 11-month low, with the yield on the10-year U.S. Treasury hitting 2.44% as prices correspondingly rose. Meanwhile, stocks also advanced, hitting new closing high records. The question now is: Can stocks and bonds continue to advance together? As I write in my new weekly commentary, “Sticking with Stocks,” at current levels, traditional bonds look expensive and I continue to favor equities over bonds. Even as stocks move toward new highs, they still offer more relative value than bonds, and I expect them to outperform over the long run. Though I don’t expect a big selloff in bonds, causing rates to sharply climb back up, I do expect interest rates to rise modestly in the second half of the year. Even a small rate rise puts bond holders at risk, and at current prices, I don’t think traditional taxable bonds, […] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
Last week, both stocks and bonds rallied. Bond yields fell to an 11-month low, with the yield on the10-year U.S. Treasury hitting 2.44% as prices correspondingly rose. Meanwhile, stocks also advanced, hitting new closing high records. The question now is: Can stocks and bonds continue to advance together? As I write in my new weekly commentary, “Sticking with Stocks,” at current levels, traditional bonds look expensive and I continue to favor equities over bonds. Even as stocks move toward new highs, they still offer more relative value than bonds, and I expect them to outperform over the long run. Though I don’t expect a big selloff in bonds, causing rates to sharply climb back up, I do expect interest rates to rise modestly in the second half of the year. Even a small rate rise puts bond holders at risk, and at current prices, I don’t think traditional taxable bonds, […]
