Historically low Treasury yields will force investors into the equity market. With the S&P delivering 1.87% dividend yield and Treasuries at just 1.78%, many investors will choose the former.
Note the peak Treasury yield of 16% in 1982. We have had a 33-year decline in those yields that could presage a long period of rising yields. Since rising bond yields depress bond prices, investors will prefer equities. (Graph courtesy Yahoo.com)
Note the peak Treasury yield of 16% in 1982. We have had a 33-year decline in those yields that could presage a long period of rising yields. Since rising bond yields depress bond prices, investors will prefer equities. (Graph courtesy Yahoo.com)
3 comments:
Hello Deb,
Are you still updating/adding ideas to your blog?
Miss your guidance.
Have a Great Weekend!
Greg
Yes, I am. However, family issues are pressing and the market is still in a narrow trading range.
There is very little exciting news out there as we are still in a race to the bottom for low interest rates. Politicians pressure central banks to keep rates low, so this should last for another year!
I am glad you asked.
Deborah Weir debweir@verizon.net
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