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It's Crazy How Much Stocks Have Trounced Bonds This Year

Nov 18, 2013, 19:16 IST

The stock market's 29% year-to-date gain is pretty mindblowing.

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Perhaps more mindblowing is how much stocks have been outperforming bonds. This is an important consideration if you care about asset allocation.

"Equities have trounced 10-year US Treasuries by 37 percentage points (29% vs. -8%)," noted Goldman Sachs' David Kostin in a new note to clients.

Goldman Sachs

"Investment Grade bonds returned -3% while High Yield credit returned 7%. S&P 500 has outperformed by 32 and 23 percentage points, respectively," said Kostin.

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Goldman Sachs

This is what happens when you have a Federal Reserve committed to keeping interest rates low in its efforts to stimulate the economy.

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