Saturday, January 4, 2014

ProShares UltraShort 20+ Year Trea (ETF) (TBT): 2013 Year Of Rotation Out Of Fixed Income Into Equities, How Much More In 2014? - Seeking Alpha

ProShares UltraShort 20+ Year Trea (ETF) (TBT): 2013 Year Of Rotation Out Of Fixed Income Into Equities, How Much More In 2014? - Seeking Alpha

This is an interesting article about the relationship between the 30 year bond yield to the S&P earnings yield.  As most people know, many bond investors switched over to stocks in 2013.  This factor along with QE gave us 29% for the S&P 500 for the year.  Sooner or later, a stock market top will occur, though.  We are not close to that yet, but a 4% yield on the 10 year bond and 5% on the 30 year bond will probably cause a reversal to bond investing because of safety and a sufficient yield.

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