8/3/07

Bond yields and stock prices

If you followed my discussion on the relationship between bond yields and stock prices in previous numerous blogs you would understand what is happening.

Stocks are declining and bond prices are rising. Exactly as I suggested in my analysis.

Investing is not about returns. It is about the probability you have to make money. And investing in bonds has been a high probability play in the past two months.

As long as stocks keep heading lower, bonds will be OK. Bonds will keep rising even after a substantial rise in stocks. See charts below on this site.

Stay tuned.

More on http://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977

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