S&P 500 NTM Earnings Yield Gap – Earnings Yield Gap vs. Inflation and U.S. Treasury Yield The earnings yield gap vs. U.S. 10-year Treasury yield is low, but still above its long-term average. Image: Goldman Sachs Global Investment Research
S&P 500 Earnings Yield and U.S. 10-Year Treasury Yield Higher U.S. 10-year Treasury yields would weigh on U.S. equities. Image: Richardson Wealth
Valuation – Real Forward Earnings Yield vs. S&P 500 Index Is inflation transitory? The S&P 500 looks expensive with real earnings yields at record lows. Image: Lohman Econometrics
S&P 500 Equity Risk Premium – Consensus Bottoms Up Earnings Yield – 10-Year Treasury Yield The S&P 500 Equity Risk Premium remains very low. Image: Morgan Stanley Research
Valuation – S&P 500 Real Earnings Yield The S&P 500 real earnings yield has fallen into negative territory and is at a 40-year low. Image: Bloomberg
Valuation – S&P 500 NTM P/E vs. Gap Between S&P 500 Earnings Yield and U.S. 10-Year Treasury Yield Goldman Sachs expects a roughly flat S&P 500 P/E multiple through 2022. Image: Goldman Sachs Global Investment Research
Valuation – World Technology 12-Month Forward Earnings Yield and 10-Year Treasury Bond Yield Plus 2.5 Tech stocks are less attractive, as the world tech 12-month forward earnings yield is still below the 10-year Treasury bond yield plus 2.5. Image: BCA Research
MSCI World and World Technology 12-Month Forward Earnings Yield Minus U.S. 10-Year Bond Yield Over the last 4 years, the MSCI World tended to decline when the yield gap was close to 2%. Image: Societe Generale Cross Asset Research
Equity Risk Premium – S&P 500 Cyclically-Adjusted Earnings Yield and 10-Year Treasury Yield The equity risk premium suggests that U.S. equities remain attractive relative to bonds. Image: Alpine Macro
S&P 500 Index Real Earnings Yield S&P 500 real earnings yield nears post-crisis low. Image: Morgan Stanley Wealth Management