Stocks have done well this year and the past 90-days. Which would you rather have owned the past 90-days and Year to date, the S&P 500 or Bond fund ZROZ? Below looks at the performance of the S&P and ZROZ over the past 90-days.
CLICK ON CHART TO ENLARGE
Over the past 90-days, bond ETF ZROZ has nearly doubled the returns of the S&P 500. Despite the S&P doing well this year to date, ZROZ has done even better than the S&P 500, gaining around 3% more. Below looks at the Stock/Bond Ratio (SPX/ZROZ) over the past few years.
CLICK ON CHART TO ENLARGE
Does it matter that bonds are stronger than stocks? Do bond traders know something that stock traders don’t?
Maybe it doesn’t matter until it matters applies to stock & bond performance of late! So far, the bond strength the past 90-days, doesn’t seem to matter to the stock market. If the stock/bond ratio would happen to keep heading south, in time I humbly feel it will matter and will send an important message, if it does.
Full Disclosure- Premium Members have been long bonds since around Christmas of last year. .
This information is coming to you from Kimble Charting Solutions. Home of the Power of the Pattern where we provide Concise, Timely and Actionable chart pattern analysis and commentary so in very little time you know the pattern at hand and action to take
Send us an email if you would like to see a sample or trial to our research
Website: KIMBLECHARTINGSOLUTIONS.COM
Blog: KIMBLECHARTINGSOLUTIONS.COM/BLOG
Questions: Email [email protected] or call us toll free 877-721-7217 international 714-941-9381