Real Time e-mini S&P Trading, plus contrarian commentary on all the markets, all the time
Thursday, November 20, 2008
A Look Back at 1981
Back in 1981 the U.S. Treasury long bond yielded more than 15% while the Dow's yield was around 6%. I used to amuse my friends by telling them that sometime after the year 2000, once the long term interest rate cycle bottomed, that the long bond would yield less than the Dow.
Today the long bond is yielding less than 3.70% while the Dow's yield is above the 4.25% level. I never expected being right would be so painful!