This Hasn’t Happened Since 1995…

Well, all’s apparently well that ends well for U.S. equities which, on Thursday, are surging thanks at least in part to John McCain saying he’ll support the tax bill that’s currently being debated.

A couple of things worth noting. The S&P is setting up for its eight straight monthly gain – that would be the longest streak since January of 2007:

SPX

For its part, the Dow is on pace for its best daily gain in nine months:

Dow

But far more notable than that, the Dow’s eight-month winning streak would be the longest since July of 1995:

Dow2

Meanwhile, bonds are selling off – and “bigly.”

10Y

5-year yields now the highest since 2011:

Bonds

This is probably a good time to remind you that we are now in the longest bull market for a balanced 60/40 portfolio since the 20s:

6040Goldman

While most 60/40 drawdowns come courtesy of sharp corrections in equities, there are some exceptions…

Bonds3

And as Goldman reminds you “bonds are increasingly a source of risk as both the ‘taper tantrum’ and ‘bund tantrum’ showed.”

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