Description: The Last Time Bonds Were This 'Cheap' To Stocks Yields Crashed With practically every valuation measure indicating stocks are "fully" valued "over" valued or "in a freaking bubble" the last respite of the desperate asset-gatherer has been "well relative to bonds stocks are still cheap." That is no longer the case... The yield advantage of owning 10Y Treasuries over the S P 500 is now over 60bps (10Y yield at 2.57% and S P divi at 1.97%)... The last time this set of circumstances occurred was in September 2014 - after the taper tantrum sell-off in bonds and was followed by a collapse in the 10Y yield from 2.60% (right where we are now) to 1.60% in the next 5 months (and began with the 10% collapse in stocks at the end of QE3 that Bullard managed to save). Will Yellen catalyze the event next week?
By Frankie Cordeira Jr.
Pinned to Domestic and Global News on Pinterest
Found on: http://ift.tt/2m4h5HZ
By Frankie Cordeira Jr.
Pinned to Domestic and Global News on Pinterest
Found on: http://ift.tt/2m4h5HZ