As good as this year has been in the stock market (up more than 20% year-to-date), this year has been made even better by gains in bonds, including high yield, corporates, and treasury bonds. The link between all of these rallies has been a sharp downward trend in interest rates (stock investors like lower rates as it helps the economy grow, and bond prices move inversely to rates by definition).
The chart below shows the “The Everything Rally” as termed by Bloomberg in stocks and bonds. For the first time in nearly 3 years, all four asset classes (stocks, high yield, corporates and treasury bonds) are at their all-time highs, simultaneously.
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