The government bond to stock rally has been a sight to behold ever since the election. The 30 year treasury yield minus the dividend yield on the S&P 100 looks like it is close to a minor resistance at 1.6 which is the high of 2015 which was after the yuan-induced market swoon.
Larry Kudlow had some commentary about the United States treasury issuing 100 year bonds. Although treasuries have already fallen a lot from the peak, they have way more room to fall to get to relative stock-to-treasury valuations similar to 2007, and that is the scary part. It's not a "safe" asset by any means.
Edited by Charvo, 10 December 2016 - 01:23 AM.