(This is
true of bond index funds, too.)
Not exact matches
While this only goes back to 1999, it would still be insightful to compare these two
indexes on a year by year and aggregate basis for total return and volatility to get a
true sense
of the difference that treasury
bond duration makes.
But more importantly this old study (by mitochondrial membrande phospholipid fatty acids composition remodeling towards a low perodizable
index PI and double
bond unsaturation
index DBI by genetically reduced desaturase (essentially switching perodizable polyunsaturates with monounsaturates / saturates, rendering membranes lipid peroxidation resistant / blocking hydroperoxide formation by DHA n - 3 and lowering mitochondrial DNA lesions formation by membrane lipid peroxidation chain propagation), It's
true though that these effects are due to transcriptional lipid genes regulation (so the genes are the reason
of this dramatic effect and this is also a gene therapy, that hit the key points) this old study showed
As a result, we might expect to see the S&P 500 increase (decrease) when the relative return
of the S&P US Treasury TIPS 5 - 10 Year
Index to the S&P U.S. Treasury
Bond 5 - 10 Year
Index improves (worsens) and for the reverse to be
true for Treasury
bonds.
It's
true that interest rates are near historical lows: as
of early May, 10 - year Government
of Canada
bonds are yielding just over 1.5 %, and a broad - based
bond index fund like the ones I recommend in my model portfolios yield a little less than 2 %.