S&P 500 Earnings Yield Minus U.S. 10-Year Treasury Yield The recent rally has made U.S. equities expensive compared to bonds. Historically, when the risk premium has been at current levels, the S&P 500 has delivered an average 12-month return of just 2.5% over the past three decades. Image: Bloomberg
Spread of Nasdaq-100 Earnings Yield Over 10-Year U.S. Treasury Yield Investing in the Nasdaq 100 presents both opportunities and risks, particularly in the current economic climate characterized by high bond yields and stock market exuberance. Image: Bloomberg
S&P 500 Earnings Yield – UST 3-Month Yield Historically, when the cash yield exceeds the earnings yield, this is often seen as a headwind for equities, as investors tend to prefer allocating their funds to cash investments rather than stocks. Image: BofA Global Investment Strategy
S&P 500 Fwd Earnings Yield – U.S. 10-Year Treasury Yield Can U.S. Treasury bonds be considered more attractive than U.S. stocks at present? Image: The Daily Shot
S&P 500 Earnings Yield Gap vs. Real 10-Year U.S. Real Treasury Yield U.S. equities look expensive relative to rates. Image: Goldman Sachs Global Investment Research
S&P 500 Earnings Yield vs. U.S. 6-Month Money vs. U.S. IG Yield Goodbye TINA. There are finally attractive alternatives to the U.S. stock market. Image: Deutsche Bank
Stocks – MSCI EMU Earnings Yield Minus Real 10-Year Bund Yield (Equity Risk Premium) The equity risk premium below its 10-year average does not bode well for eurozone stocks. Image: Gavekal, Macrobond
S&P 500 Equity Risk Premium – Consensus Bottoms Up Earnings Yield – 10-Year Treasury Yield Can U.S. Treasury bonds be considered more attractive than U.S. stocks at present? Image: Morgan Stanley Research
Mega-Cap Tech Earnings Yield Gap How long will the mega-cap tech earnings yield gap vs. 10-year UST remain below the historical average? Image: Goldman Sachs Global Investment Research
6-Month Treasury Bill Yield vs. S&P 500 Cyclically-Adjusted Earnings Yield Should investors favor U.S. T-bills over U.S. stocks? Image: Goldman Sachs Global Investment Research
S&P 500 Index Real Earnings Yield The real earnings yield on U.S. stocks has never been lower. Image: Morgan Stanley Wealth Management