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).
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.
But over the past 30 years, the best performers have not been real estate, but non-real estate companies.
Can you say Treasury Dazzle?