(*excluding dividends on both TLT and SPY , and TLT gave off far more dividends along the way).
Notice how the massive drop in the stock market has grinded back to the level where bonds have been for the last 3-4 years.
There is no "trade" on this chart - only an interesting historical return of two markets roughly equaling each other after exactly 8 years. Good conversation starter for your next party.
Keep in mind too: You had to lose 56% of your money in order to earn a 4.75% return per year. That's why stocks are so challenging for people to hold onto during so many ups and downs.
Let me just pull some info Off the web:
The basics: Qualified dividends, as well as capital gains, for individuals in the 25%, 28%, 33% and 35% income-tax brackets will continue to be taxed at 15%. Individuals with more than $400,000 in taxable income—and couples with more than $450,000—will see the rate rise to 20%. If a taxpayer is in the 33% tax bracket, then all of his or her interest income will be taxed at 33%. This rule applies for interest that is both fully taxable at all levels and also for interest that is taxable only at the federal level
"If you were clever enough to move ALL of your money OUT of US STOCKS in 2007 and moved them into 20 Year US Gov't Bonds... You would be up 38% (excluding nice dividends along the way). The same return as the S&P (excluding dividends also)."