There’s been plenty of conversation around stocks and bonds over the past 7-10 years.
Many analysts are point to high valuations for stocks or to low yields for bonds. Much of this is also followed by opinions and noise.
As I’ve pointed out many times, despite valuations, prices continue to trend higher. The S&P 500 (NYSEARCA:SPY) broke out of a two decade box. This is a fact. And it’s bullish.
As an investor and money manager, I deal in probabilities. And until I see something that changes the current trend and setup in equities, it doesn’t make sense to change course.
In this week’s stock market video, we point to an indicator that confirms the bullish trend for stocks.
The ratio performance of stocks vs bonds plotted on a longer term chart shows a two decade span where stocks and bonds took turns outperforming but neither could breakout… until this year.
In the video below, I highlight this ratio and discuss what it means for stocks and bonds going forward. I also discuss the performance of Gold (NYSEARCA:GLD) in relation to stocks throughout history… and what it’s saying now.
WEEKLY STOCK MARKET VIDEO – After you click play, use the button in the lower-right corner of the video player to view in full-screen mode. Hit Esc to exit full-screen mode.
Thanks for watching.
Twitter: @CiovaccoCapital
The author or his clients may hold positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
