US Treasuries are more hated than ever. Over the last 10 years, the S&P 500 has outperformed US Treasuries by 15 percentage points on average per year, the largest outperformance since the late 1950s. This figure includes stock dividends and interest earned on Treasuries, and is adjusted for inflation. Excluding the 1950s, this is the biggest outperformance by US stocks in financial market history. By comparison, the long-term average since the 1880s is ~5 percentage points. This comes as US Treasuries have delivered an average annual inflation-adjusted return of -3%, their worst performance since the early 1980s. Meanwhile, the S&P 500's average annual real return has been +12% over the same period. The gap between stocks and Treasuries has rarely been wider.(The Kobeissi Letter)