This return has come mostly through appreciation as bond values rise as interest rates fall. We recently discussed how every financial forecaster polled by Barron's predicted higher stock prices in 2015. What we did not review is that every one of them also predicted lower bond prices (higher yields).
While I think both asset classes are at nosebleed dangerous price levels (I would rather own foreign assets, commodities and cash), sentiment appears to favor owning treasury bonds over U.S. stocks in the new year.
