A Look Back at 1981 -- MrSwing

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A Look Back at 1981
Nov 20, 2008

Carl Futia

CarlFutia.com
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Back in 1981 the U.S. Treasury long bond yielded more than 15% while the Dow's yield was around 6%. I used to amuse my friends by telling them that sometime after the year 2000, once the long term interest rate cycle bottomed, that the long bond would yield less than the Dow.

Today the long bond is yielding less than 3.70% while the Dow's yield is above the 4.25% level. I never expected being right would be so painful!

by Carl Futia (CarlFutia.com)