Bonds Beating U.S. Stocks Over 30 Years for First Time Since 19th Century

Bloomberg reports:

The biggest bond gains in almost a decade have pushed returns on Treasuries above stocks over the past 30 years, the first time that’s happened since before the Civil War.

Long-term government bonds have gained 11.5 percent a year on average over the past three decades, beating the 10.8 percent increase in the S&P 500, said Jim Bianco, president of Bianco Research in Chicago. Investors seeking safety following the collapse of Lehman Brothers Holdings Inc. in September 2008 fueled demand for debt and upended the notion that equities rising along with corporate growth must offer the best gains.

More regulations and more taxes = lower equity returns. Don't be shocked if the next 30 years provide higher bond yields and lower bond prices.