Stocks Vs. Bonds Since March Low *Updated and Corrected

 

With all the talk of a bond bubble lately I decided to make up a quick chart to look at the performance of the S&P 500 and the TLT since the March 2009 bottom in the stock market. This is only a relationship you can compare in the relative short term and the chart above is two years from September 2008 to yesterday. I used the S&P 500 on the blue line for stocks and the TLT on the red as a proxy for bonds.You can clearly see the March low in the S&P and the relative top in bonds a few months prior. The S&P has come about 64% off the lows while bonds are a mere 11% off the highs from when the financial crisis was at its worst and "the world was ending". I will say no more and allow you to draw your own conclusions about what is to come.