the 10-year yield/dividend yield ratio is ~0.15 basis points
the 10-year yield/dividend yield ratio is ~0.15 basis points
Last edited by gapcap1; 10-14-2014 at 09:32 PM.
Indeed.Originally Posted by gapcap1
This tells us that investors are looking for safety and not yield.
Pascal
So I did a quick search looking for a graph of this ratio and nothing turned up with the search terms I used. Is there a table or a graph or some sort of call letters that we can check out to see historical averages?
tnx
hope this helps...
Holy crow. Not only is the ratio odd, but both yields are extraordinary by comparison with their historical values. You keep hearing things about this or that yield being at an all time low, but this picture is definitely worth a thousand words.
Also, gotta wonder whether debt-fueled buybacks figure in to the yield chart or whether the buybacks are in companies that don't throw off cash.
Tnx.
Always think it wise to look at lower grade bonds as well govies when doing these sorts of comparisons. Don Hays used the "Fed Model" in his allocation work and got scrunched in 2008 because he failed to account for the "flight to safety" modality.
Would you please explain further, especially about that model?
I took a look at the div yield and price history of HYG and they've gone in opposite directions since 2009, so it's followed the same trajectory as govies, although HYG tanked in 09 and its yield peaked in April 09.
Right now HYG price is down and in the past two weeks, yield is up.
How should this all be interpreted? And lastly, is HYG the kind of stand-in you're talking about for lesser quality bonds? And how do we use this information?
tnx
when this ratio is negative, it is only natural that money moves out of treasuries and back into dividend stocks - pascal
the ratio went negative in 09 when the current bull market (recovery) began and again in 2012 prior to the second major leg of the current rally
bought 19's a little while ago
you getting long here?
that would be es
bought 19s and 30s, scalped some out 36, 38.25, & 41.75, then touched the position up @ 43.50, 51.25, 53.50, and covered the bulk of the position @58.50 - went home long 2 units and just bought 43.50s to add
Posting Permissions
Reply With Quote
