The Bull Market in U.S. Treasuries that Just Won’t Quit

Stocks around the globe are swooning and bonds are zooming.

The almost 3% correction in the S&P 500 (SNP:^GSPC) over the past week has pushed long-term Treasury bond ETFs (NYSEARCA:TLT) higher by around 2.75%.  And just like that, the bull market in bonds that 100% of Wall Street’s economists said would end badly in 2014 continues uninterrupted. Apologies for saying it, but we told you so!

The chart below illustrates how unleveraged long-term U.S. Treasury bond ETFs like TLT along with 2x bull (NYSEARCA:UBT) and 3x bull (NYSEARCA:TMF) ETFs are soaring.

Without surprise, Wall Street is reluctant to admit that long-term U.S. Treasuries have slaughtered the year-to-date (YTD) performance of just about every major asset category from the S&P 500 (NYSEARCA:SPY), to gold (NYSEARCA:IAU), and even global real estate (NYSEARCA:VNQI).

(Audio) Listen to Ron DeLegge @ The Index Investing Show

The outperformance of long-term Treasuries vs. stocks is a major unfolding investment theme that we alerted our readers about going back to our timestamped TLT buy alert on 3/5/14.

TLT

The ETF Profit Strategy Newsletter is your bond market HQ. We use technical analysis, market history along with common sense to keep investors on the right side of the market.  All readers get email and text alerts.

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