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.

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