It’s a good thing S&P isn’t a hedge fund

…because LOL at the “timing” of their US credit downgrade and upgrade.

The below chart includes outlook changes and the big ratings downgrade versus bond yields (converse of price) as well as US stocks (via the S&P 500).

click to embiggen!

market reactions

Turns out the exact right response to S&P’s much-ballyhooed US downgrade was to buy both bonds and stocks. Essentially, to fade that downgrade from every angle. Go back and look at the headlines of the time, however. Absolute hysteria.

Let that be a reminder should anyone tell you that today’s upgrade (from outlook negative to stable) has any sort of meaning for your portfolio going forward.

Between S&P’s downgrade in the fall of 2011 (less than two years ago), we’ve seen the yield on the 10-year treasury drop by 14.34% and the S&P 500 rally more than 37% not including dividends.


What's been said:

Discussions found on the web
  1. btc evolution review commented on Sep 18

    … [Trackback]

    […] Find More Info here on that Topic: […]

  2. Immediate Edge Review commented on Sep 22

    … [Trackback]

    […] Here you will find 82884 additional Information to that Topic: […]

  3. immediate edge review 2020 commented on Sep 22

    … [Trackback]

    […] Find More here to that Topic: […]

  4. bitcoin loophole commented on Oct 03

    … [Trackback]

    […] Read More here on that Topic: […]

  5. commented on Oct 04

    … [Trackback]

    […] Info on that Topic: […]

  6. Fameoninsta commented on Nov 21

    … [Trackback]

    […] There you will find 50478 more Info on that Topic: […]

  7. Functional testing solutions commented on Nov 27

    … [Trackback]

    […] Read More to that Topic: […]