That giant sucking sound you hear is money fleeing stock markets for the safe havens of the U.S., German, and U.K. sovereign bond markets. It's fear talking -- fear of intensifying crisis in the eurozone.
About a month ago, the Germany government sold $5 billion worth of Eurobonds that paid an average interest rate of -- get this -- negative 0.0122%. That's right: These bonds are guaranteed to lose value. So why did they sell? In a word, it's all about risk.
For the first time in several decades, the 30-year annualized returns of Treasury bonds surpassed the dividend adjusted gains of the S&P 500 in 2011. Take a picture if you want -- because this won't last.