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

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

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.

"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.

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