Thursday , 18 October 2018

Tag Archives: inflation-adjusted 10-year earnings yield

Both Stocks and Bonds are Expensive! Here's Why

[We have determined that] the current cyclically adjusted real yield of 5.28% is telling us that the stock market is expensive, at least by historical standards. [In addition,] ...we have also determined that, relative to bonds, the real spread between stocks and bonds is 7.2% in terms of yields, i.e., stocks relative to bonds seem cheap. If stocks are expensive, and stocks relative to bonds seem cheap, this implies that bonds are also expensive. Everything is expensive! [Let me show you the math that confirms just that.] Words: 1590

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