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.
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