I understand what motivates people to buy equities, but not bonds. Why does the bond market seem to behave in opposition to the stock market?
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- Published: Apr 21st, 2010
- Category: Bonds Market
- Comments: 2
I understand what motivates people to buy equities, but not bonds. Why does the bond market seem to behave in opposition to the stock market?
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densmaltz
on Apr 21st, 2010
@ 5:13 pm:
http://www.bond.com
pgcpaul
on Apr 21st, 2010
@ 5:31 pm:
There is no correlation between bonds and stocks. Bond vales corellated to interest rate, but not stocks. The lines on the chart (see link below) show an S&P 500 fund, a US long bond fund, a US Short-bond fund, and the 30-year US bond rates on the same scale.
This chart shows all funds fully adjusted for dividends.
See the chart from Investors FastTrack below