In search of a “bubble”: In the year 2000, Cisco Systems (CSCO) sold for 100 times earnings and paid no dividends. At the same time, the yield on the 10 year maturity U.S. Treasury Bond equaled 6.5%. When the internet bubble burst, Cisco’s price was decimated.

Today, the 10 year maturity U.S. Treasury Bond yields a low 2.4%. Meanwhile, Cisco sells for 16 times earnings and yields 3%. Many advisors believe it is clear a bubble in U.S. Treasury Bonds has formed, and it is only a matter of time before it bursts.

Note: the statistics on Cisco are for example purposes only. This is not intended to be a recommendation to buy Cisco.