Lost decade for bonds looms

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| By Susanne Walker, Bloomberg

US Treasury obligationen offer the return on stocks, investors reason, to keep alive the bull market in bonds less than half little.

US treasure obligationen offer less than half the return of shares, investors hold little reason that give three decades bull market in bonds alive as new housing projects, that economic confidence of consumers and corporate profits improve.

During the 10-year Treasury bonds 2.61% yield rose from a 2013 low of 1.61% on May 1st the aggregated earnings yield on the stocks in the standard & poor's 500 index 6.4% of the index price, after data from Bloomberg Central Bank. Even after the sell-off in bonds, the point gap of four percent is more than double the average of 1.9 points since 2000.

With the Fed could say tapering to begin its $85 billion from monthly bond purchases, investors from Leon Coopermans Omega advisors to BlackRock are longer-term Treasury bonds this year, affected returns for many years will be depressed to avoid. Money managers see the end of a rally that began after the former Federal Reserve Chairman Paul Volcker to beat inflation in the early 1980s.

"Lost decade for bonds has started," said Howard Ward, the chief investment officer of GAMCO investors, the $36.7 billion who in a June 19 telephone interview. "Stocks probably go the asset class of choice in the course of the next 10 years." "Now, since the flood has become and the economy is doing better, investors in bonds is a hard time to make no money."

With consumer confidence was approaching a six-year-high, housing starts increase 2008 levels and corporate profits double what they were five years ago, $9.1 billion fixed-income funds and exchange traded funds in the week ended investors on June 5, the second highest total in more than 20 years, according to Lipper.

JPMorgan Chase, the most active Institute of corporate bonds since 2007, earlier this month joined Barclays Bank of America recommended Morgan Stanley and Goldman Sachs shares on most bonds as equity yields most since at least 1997 company exceed debt.

Bank of America Merrill Lynch US Corporate & high yield of index compares S & P 500 index ($INX), including reinvested dividends 2.6% loss this year with a 12.8% profit for the. Treasury bonds have lost 2.8%, according to the Bloomberg US Treasury bonds index.

Fed Chairman Ben Bernanke told reporters in Washington on March 19 this directive that policy makers are ready to start their bond purchase is still being phased out this year and purchases to stop mid 2014, as long as the economy meets the Central Bank forecasts. Bonds fell worldwide along with the stock markets.

The world economy "in the early stages of the recovery of the equity capital culture and romance may be growing the end of a 30-year" is bond, Jim O'Neill, the former head of Goldman Sachs asset management and now acting with Bloomberg said look at Bloomberg television. "When the game begins to change with the central banks, it is inevitable bonds go to suffer."

The last bond sale was, not limited to the United States. 21 Basis points last week amounted to 1.73% yields on 10-year German Bunds. U.K. gilts rose 34 basis points to 2.4%.

"Liquidity is now King and what we get liquidity is cascading error", said Mohamed El-Erian, CEO and co-chief investment officer of PIMCO. "If you change the paradigm of liquidity, what you get is massive technical unwinds and that speaks for the fluctuation."

Worldwide lost bonds of all kinds of 1.5% in 2013, even after accounting for reinvested interest Bank of America Merrill Lynch's global broad market index shows. The meter had no up year since 1999, when it fell 0.26%.

Appeal met stocks prospects for less fed also last week. The s- and - P-500 fell 2.1% to 1,592.43, down from the record high of 1,687.18 on May 22. The benchmark STOXX Europe 600 index 3.7%, while the MSCI World Index (MSCI) fell 2.9%. S & p fell Monday 1.21%.

The profits of the companies in the s & P-500 jumps more than 10 percent in the next two years after doubling since 2008, an average of more than 11,000 analyst expectations. Profit gains of this magnitude would provided returns to 8.3%, no change in the share index to send. The s- and - P-500, trades on a multiple of 14.7 times this year his earnings forecast.

"The stock market multiple is low compared to interest rates," Leon Cooperman, Chairman and Chief Executive Officer of hedge fund Omega advisors, with $8.4 billion under management, said in an interview with Bloomberg television. "There is room for increases", he said, adding that a fair level for the s &-P-500 1.600 is up to 1,700.

Bonds have their backers. According to Jeffrey Gundlach, Fund Manager of the $41 billion Ramesh total return Bond Fund Treasury bonds will be for the next few months the best performers. The Fund returned over the 12 months late June to hit 4.35% 21, 91% of the peers. It lost 0.1% this year better than 88% of the competitors.