While there has been a lot discussion in the last year about the supposed mania surrounding the fixed income universe, it is somewhat ironic that the total return of the 10-Year US Treasury is actually less than the total return of the S&P 500 over the last 12 months. Over the last year, the 10-Year Treasury has seen a total return of 12.01%, while the one year total return of the S&P 500 over the same time period eclipsed 17% last week.
Even more surprising is the performance of Treasuries since Ben Bernanke first broached the possibility of QE2. Since Bernanke's speech in Jackson Hole on August 26th, 10-Year US Treasuries have had a total return of 0.16%. Over that same time period the S&P 500 has seen a total return of more than 17%! Equities may get no respect, but who needs respect when you have gains like these?
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