Search Results for: earnings yield

S&P 500 Valuation and Equity Risk Premium This chart shows that the equity risk premium (earnings yield less 10-year Treasury yield) has declined to 3.9%. Picture source: Fidelity Investments

Equity Risk Premium The equity risk premium (earnings yield less bond yield) stands at 4.48% (the 90th percentile since 1985). It suggests that equities are cheap relative to bonds. Picture source: Fidelity Investments

Time Lags Between Indicators and Recessions Chart showing that credit standards, earnings and the yield curve are the earliest recession indicators. Picture source: Oxford Economics