As you can see from some of my recent posts, I’ve been searching for information on how different asset classes handle financial crises.
I came across a nice white paper from Meb Faber and his crew at Cambria, which has exactly what I was looking for. They have evaluated performance of stocks, bonds, commodities, gold and REITs during the S&P 500’s 10 worst months since July 1986. Continue reading
Bloomberg’s Gadfly section has a good article on Jeremy Siegel and his views on market valuations.
Definitely worth a read, as it takes a look at the CAPE Ratio and the impact of GAAP reporting vs using operating earnings.
But what I found most surprising was the below chart. I don’t find the case for holding bonds today compelling, but I didn’t know they had until very recently been outperforming US stocks since 2000.
Obviously the start and end date of any indexed chart can profoundly change the “story”, but I found the chart interesting nonetheless.