The End Of 2017 And A Look Back 10 Years!

It is the end of 2017.  Cool.

By all reviews, the year was a good one for investors.

For some perspective, here is a 10-year look back at the monthly chart for SPY VS TLT.  Risk ON vs Risk OFF.  When stock markets are doing poorly, people rush to buy Treasury Bonds.  You can see this on the left-hand side of the chart.  All of the long-term moving averages and price are sloping down.  Treasuries were in demand.  

You can also see this from mid-2014 to mid-2016.  Treasuries outperformed the SP500 by a few percentage points.

Right now, at the end of 2017 the SPY TLT ratio clearly favors stocks. Looking ahead.  This ratio will change.  It always does.  As bullish as it is, could we be in for an extended period of strong stock performance?  Sure.  But at some point, the market will correct, and if this ratio changes to favor TLT we will make changes as needed.

We will stay long-term focused. We will follow the market probabilities and take a risk where it makes sense. We will not forecast or guess or hope where the market is going.

We hope the New Years brings you love, peace, and prosperity!

Rally.

Chris Vig is president of The Vig Company and is an investor, artist, author, business consultant and former CEO living in Monona, WI. This article is for entertainment purposes only.  Do you own diligence when investing your hard earned cash.