ProShares UltraShort 20plus Year Treasury (TBT)

[OTCRIDER]

Chart 8: IG Corporates and Govt. Bonds Rallied Strongly After 1932

http://seekingalpha.com/article/3987056-u-s-treasury-yield-curve-nulls

....For example, author Russell Napier has written extensively about what happened to various asset classes in the Great Depression (cf. Napier, 2007; Anatomy of the Bear: Lessons from Wall Street's Four Great Bottoms, 2 nd Edition, Harriman House Ltd., Peterfield, Great Britain, 304p). Obviously, stocks sold off catastrophically, but the more interesting asset classes are investment grade corporate and government bonds. Government bonds initially rallied during the period from September 1929 to June 1931. However, once the banking crisis began and the government abandoned the gold standard (note that the modern day equivalent would be the disbanding of the Eurozone), government bonds actually sold off. Bonds finally stabilized once the Reconstruction Finance Corporation was established in January 1932 (Chart 7). Investment grade corporate bonds sold off massively after September 1929, but then recovered and made great gains side-by-side with government bonds from 1932 onwards. Stocks also bottomed in the summer of 1932, rallying strongly until the second dip of the Great Depression began in August of 1937.