Why Bonds May Trail Stocks Again in 2010

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Wall Street firms say equity returns may continue to top those on bonds as the U.S. economy recovers


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[jenny14]

Hello Friends....


Never have Treasuries underperformed stocks as much as in 2009, and the world's biggest bond dealers say this year may offer more of the same as the U.S. economy recovers and unemployment abates.


After soaring 14 percent in 2008 when credit markets froze, Treasuries fell 3.72 percent on average last year. Investors shunned government debt while the U.S. raised a record $2.11 trillion selling securities amid signs that the worst slump since the 1930s had ended. The losses for Treasuries contrast with the Standard & Poor's 500's 23.5 percent gain.


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