What are Bonds telling us?

There has been a lot of talk about inflation lately. But what is the market telling us. Let us analyse 2 charts to interpret the same.

TLT or 20 year Treasury Bond Prices have broken out. This indicates yields have fallen rather than the wider anticipation of yields rising with increased infaltion.

Bonds vs Stocks ratio is still trending down. This indicates that it is still prudent to be invested in stocks.

The net conclusion is its a bit of a mixed picture but as long as Bonds vs Stocks is trending down, it is advisable to remain invested in Equities.

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