Bull vs. Bear: S&P Yield Eclipses 10-Year Yield
November 21, 2008
– Comments (4)
Here's an interesting one that I came across this afternoon:
S&P Yield Eclipses 10-Year Yield
For the first time in five decades, the dividend yield for the S&P 500 has passed the yield of the 10-year U.S. Treasury note. Is this a bullish sign signaling that it is time to buy stocks or a bearish sign because everyone on Earth assumes that we are entering into an extended deflationary period or at lease one with terrible corporate profits? Interesting question.
I don't think that anyone for certain. I'll think it over while sipping on a beer tonight. I do know one thing though it will be a cold day in heck before I buy lock my money in for ten years at 3.5%, or even worse at interest rates approaching zero in some of the shorter-term treasury notes. I'd rather bury the money in my back yard than give it to Uncle Sam for free. I'll keep buying stock in high yielding companies and take my chances that I can beat a 3% annual return over the next decade thank you.
Deej
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