T-Dazzle! Is The Fed The New Investment Performance Benchmark? (Hint: All Assets Beat It)

Can you say Treasury-dazzle or T-Dazzle?

Since March 2009, after a massive intervention by The US Federal Reserve in terms of target rate cuts and assets purchases (QE), the S&P 500 index, the NAREIT Equity index and the NCREIF All-property index have zoomed to all-time highs (note that lack of volatility of the NCREIF commercial property index).

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It seems that all assets classes have been “juiced-up” by The Federal Reserve monetary expansion that seems to be permanent. All assets classes can beat it.

And since March 2009, the Treasury actives curve has declined by over 100 bps.

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But over the past 30 years, the best performers have not been real estate, but non-real estate companies.

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Can you say Treasury Dazzle?

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