Buy Humiliation ?

“Buy Humiliation, sell Hubris” – this approach was presented by BoA’s investment strategist Michael Hartnett in his latest report “The Flow Show”.

What is Humiliation? Just long-end US Treasuries!

Humiliation #1: total return since 31-Dec-2006:

iShares 20+ Year Treasury Bond ETF: +67,2%

iShares Euro Govt Bond ETF: +71,7%

iShares Core S&P500 ETF: +481,5%

Humiliation #2: annualized total return since 31-Dec-2006:

iShares 20+ Year Treasury Bond ETF: +2,83%

iShares Euro Govt Bond ETF: +2,98%

iShares Core S&P500 ETF: +10,04%

Humiliation #3: 10-year rolling annualized total return:

iShares 20+ Year Treasury Bond ETF: -0,93%

iShares Euro Govt Bond ETF: -1,08%

iShares Core S&P500 ETF: +12,51%

Humiliation #4: 5-year rolling annualized total return:

iShares 20+ Year Treasury Bond ETF: -10,14%

iShares Euro Govt Bond ETF: -6,92%

iShares Core S&P500 ETF: +16,16%

However, as always there is a silver lining too: what’s the nominal return required to get to a new all-time-high:

iShares 20+ Year Treasury Bond ETF: +81,93%

iShares Euro Govt Bond ETF: +57,64%

iShares Core S&P500 ETF: +5,51%