The lost decade for bonds has begun. Stocks are likely going to be the asset class of choice over the course of the next 10 years. Now that the tide has turned and the economy is doing better, investors in bonds are going to have a hard time making any money.
—Howard Ward, Gamco Investors, in “Lost Decade for Bonds Looms With Growing Return for Equities,” by Susanne Walker, Bloomberg News, June 24, 2013
What we have seen is a broadening out of [investors'] appetite for equities, but only to a certain price. … Now we see investors being more discriminating. That is what normally happens when you have such big moves higher.
—Joseph Battipaglia, Ryan, Beck & Co.: “Investors Take Profits as Dow Drops 127,” by , in Amy Baldwin, the Associated Press, June 24, 2003
The late and very great Joe Battipaglia was known for short, medium, and long-term optimism. A decade ago, reasons abounded for gloom. Whether 127 Dow points, Fed this or that, or geo-political geo-economics. There was, is, and will be a reason to go to cash.
Bonds have done better than good. Equities have recovered with some doing better than better-than-good.
Howard Ward carries forward Battipaglia’s cash-less non-gloom. Mr. Ward calls it a lost decade for bonds. Perhaps it is a found decade for stocks. Discuss.