- As of June 30, U.S. stocks have underperformed long-term Treasury bonds for the past 5, 10, 15, 20 and 25 years.
- Using data from research firm Ibbotson Associates, large-company stocks have returned 9.2% annually over the past 40 years through the end of June, versus 8.5% for long-term government bonds.
- One of the article’s author, Jason Zweig, calls into question the validity of data used in Jeremy Siegel’s book “Stocks for the Long Run”.
- The long-playing Treasury-bond rally seems to have petered out.
- With Washington pumping out $2 trillion in net new Treasury offerings this year, fear is growing of a vast oversupply that will send prices plummeting and yields—which move in the opposite direction—soaring.
- Bill Gross, the head of PIMCO Total Return fund, predicts that federal debt as a share of gross domestic product, now 45%, could balloon to 300% over the next 10 years.