Remarkable Stat

I was messing around with some data today and I found out a remarkable stat.

When the 10-year TIPs yield is 0.50% or higher, the Long-Term Bond ETF (TLT) outperforms the S&P 500 ETF (SPY) by 6.97% on an annualized basis.

When the TIPs yield is 0.49% or lower, the SPY beats the TLT by 26.46% annualized.

I used data going back to the beginning of 2003. Right now, the 10-year TIPs yields -0.03%.

Posted by on September 4th, 2019 at 4:44 pm


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