Bonds Vs. Stocks

Here’s a quick-and-dirty valuation metric. I looked at the total return of the Wilshire 5000 and divided it by the total return index of the Merrill Lynch 15+ years Corporate Bond Index.

Stocks and bonds are in a perpetual war with each other for investors’ money. Over the past 15 years, stocks have started to outperform bonds (meaning the line rises) at about the level we’re at now.

Posted by on October 5th, 2011 at 10:28 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.