[Pen-l] Performance of gold, SP500, and 30-Yr T-Bond in last 5 years

[Julio Huato <juliohuato@xxxxxxxxx>]

Sabri wrote:

> This is not a good graph Julio, because it is comparing oranges and
> apples. S&P and Gold are fine but that 30-year bond is not, because
> while the S&P and Gold performances in that graph are measured in
> units of return, the 30-year bond performance is measured probably in
> terms of the "on-the-run" 30-year bond yield, which is, by the way,
> semi-annually compounding.

Sabri,

I just forwarded a graph.  I wasn't making any claim.  For example, I
didn't claim that Ts did worse than gold in last 5 years.  I don't
know.  Now, T-bond ETFs are harder to find on Yahoo Finance or
Bloomberg.

But I wouldn't say that graph was apples/oranges.  Yields *are* bond
returns, if you buy and keep until maturity.  Yes, these are
on-the-run yields, lower than off-the-run yields, and Treasuries!  Not
cheap stuff.  Like top-of-line cars picked up new at the dealer.  But,
*somebody* buys and keeps each new batch of Treasuries.  And if they
don't keep them, then they take the hit.  Somebody takes that hit.

Again, I can't easily find T-bond ETFs.  I can find (corp, etc.) bonds
ETFs (Vanguard), but not Ts.  I found a TIPS ETF on Bloomberg.  Can't
send the link.  To graph it, click here:

http://www.bloomberg.com/apps/cbuilder?ticker1=TIP%3AUS

Click on 5y.  Then, on "Add Security," type GLD:US and click Go.  Then
repeat typing SPX:IND.  Gold is still ahead. Way ahead.  But again,
I'm making no claim.  Just looking at the graphs and wondering.
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