Feb

27

The ratio of stocks to bonds has very quietly lost 2 percentage points this month. Thank goodness that those that the Fed buys the mortgages and bonds from have profited as planned so that the trillions on the Fed balance sheet can be converted to bonuses and wine and the unmentionable.


Comments

Name

Email

Website

Speak your mind

2 Comments so far

  1. pp on March 11, 2013 6:31 pm

    would you mind further explaining the ‘ratio of stocks to bonds?”

    gracias,

    pp

  2. nkonko on March 13, 2013 7:40 pm

    Astronomy professor Harold Weaver pioneered the idea of plotting the relationship between Stock Prices and Bond Prices.

    You can calculate the Stock to Bond ratio in various ways. A simple one (which is used on this web site) is to take the price of the nearby S&P future (today 1550) and divide by the nearby long term bond future (141+18/32) giving 10.949.

Archives

Resources & Links

Search