Rosie Yesterday

How many of the bulls out there have a clue that bonds have outperformed stocks now, not just for 10 years, but for 30 years! The Ibbotson SBBI bond index, which measures every component of fixed-income, generated a 28% total return in 2011 compared with the 2.1% total return in the S&P 500 (which is a substandard equity return for the third year of the presidential election cycle). Not only that, but 70% (!) of the IPOs issued in 2011 are now trading below their offering price — on average they are down more than 20%.