Question for DailyWealth: Was Porter Stansberry right with his wild claim in May? Can I really make as much in bonds as I can in stocks?Answer: As always, let's consult the judge, jury, and executioner of all ideas: the market.
Below, you'll find another comparison chart. This one compares the gains in the high-yield corporate bond fund (black line) to the gains made in the S&P 500 (blue line). As you can see, Porter was right: Bonds gained a bit more than stocks. The nitty-gritty total return numbers are 17.4% for bonds versus 15.6% for stocks.
How can boring bonds register such big returns in such a short time? Bonds are just like any asset... When folks get scared to death, they'll sell a dollar's worth of bonds for 60 cents. The story here is the same as any great contrarian trade: When most folks can't stand the thought of owning something, that's when you buy with both hands.
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