A picture is worth more than a thousand words. The last six years of the SP500
versus T-Bonds (using SPY
for the S&P500
to represent bond exposure) shows many cycles that would have made plenty of money had you moved money back and forth
in order to keep a balanced portfolio of these two assets. Look closely at the weekly chart which shows that it has paid to take your time moving from the outperforming to the underperforming market. Enjoy.