Bonds finally catching a bid vs. equities

Bonds vs Stocks Ratio

• 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.