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.


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