Such Sweet Sorrow: The Stock and Bond Market Part Ways

by: Eddy Elfenbein

Eddy Elfenbein submits: As the stock market keeps chugging higher, the bond market is starting to fall behind.

As a very general rule, the bond market leads the stock market by a few months. In the chart below, I'm using the American Century Target Mat 2025 Inv [BTTRX] mutual fund as my bond proxy. Note how the bond market (the gold line) started fall behind the stock market before the Shanghai Surprise in February.

Click to Enlarge
SPX vs BTTRX