The Tug of War Between Stocks and Bonds
Over the last year the wisdom of stock rejection and bond acceptance has been challenged by the markets. Stocks have had a remarkably good year. The S&P 500 is up double digits as are the NASDAQ, major European and emerging market indices. Meanwhile there is huge divergence in bond performance. Ten-year treasuries have lagged significantly. However other specific bond sectors such as high-yield bonds have delivered equity-like returns as have emerging market issues.