After An Extremely Rare Move In Bonds, How Have Stocks And Bonds Performed In The Past?

Given the recent pullback in stocks and negative trade developments, this week’s video updates numerous “this just happened in 2019” studies. The video also looks at the bond and stock markets from additional perspectives.

2019 WILL FOLLOW A UNIQUE PATH

Each year is unique and 2019 will follow its own path.

TARIFFS ARE A LEGITIMATE ECONOMIC CONCERN

The longer the President’s tariffs remain in place, the higher the odds it will lead to economic damage and weakness. Thus, the markets are going to want to see some progress relative to moving closer to the negotiation table, something that has little to do with the historical cases above. However, in the average historical case, the rare and concerning fundamental issues of the day tended to be addressed in some way. How do we know that? Stocks tended to beat bonds after bonds reached a rare and extended state.

PRESENT DAY DATA GOVERNS DECISIONS

Our decisions in 2019 will continue to be governed by present day facts. The historical studies simply give us factual and unbiased reference points to better understand the present day probabilities. Probabilities speak to uncertainties and a wide range of possible outcomes.

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Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit ...

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