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the Next Great Bull Market

December 19, 2011 – Comments (0) | RELATED TICKERS: PPA , IYM , PPH

Today, a government bond pays a 3% yield but inflation is running at 3.5% so this is a losing proposition. You can do better with a corporate bond at 5% but you are locked-in for 5 years. Of course, a savings account doesn’t do you any good at such low rates plus the taxes. Gold just broke below its 200-day moving average. Is it really a terrible world out there? So where does that leave stocks in the market mix? To compare the best place to allocate capital, you must use the earnings yield.

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