10-Year TIPs Spread and Equity Returns

I’m clearly having fun with my spreadsheets today.

Check this out:

Since 2003, the total return of the Wilshire 5000 has lost 9.2% when the 10-year TIPs spread is 2.36% or greater. Annualized, that’s -2.7%.

When the TIPs spread is 2.35% or less, the total return of the Wilshire 5000 has been 95.1%. Annualized, that’s +13.5%.

Posted by on November 8th, 2011 at 1:14 pm


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