The Bond Rally Is Not A Good Omen For The Stock Market | Seeking Alpha
Here is an excellent article about bonds and the stock market. Indeed, it is unusual for stocks and bonds to be advancing at he same time, but this is possible because a lot of people are wary of this aging bull market and they are buying government bonds and bond ETFs like TLT. This is happening while other people are still buying stocks on low market volumes.
I'll have to admit I belong to both groups above. I own TLT and other bond stocks. Yet, I am also continuing to buy stocks that I think are worthwhile like SPXL, XLK, JAMN, and others. In addition, I am holding several dividend stocks like CEFL, a stock that pays 16% annually with distributions each month. We don't know when the stock market top will occur, and there is only so much time to accumulate wealth. However, we must also be defensive to prevent large losses at the top whenever it happens.
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