Bonds vs Stocks Ratio
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpaKVgsJGPND0Y8H0z25oK8l9nBzNrKyhpy1nRa-XMs9VY3EUhxkbQKJsCg_rPtV_ayyNhfztgJdmAPjT2vstfuIokiqzFM4x5MG6ZcjNic1WzqMU_SDWNZocftDIlEPGQHZP8MNVTJT2g/s400/bonds+vs+stocks.png)
- This chart shows the ratio of long term treasuries vs the S&P 500.
- When it moves up it shows that bonds are outperforming stocks, and the inverse is also true. When it moves down stocks are outperforming bonds.
- As you can see stocks have been outperforming bonds for almost a year now. This chart is now finally starting to register caution signals for the equity bulls. Just looking at the movement of the ratio I would be positioning myself defensively against stocks.
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