J.P. Morgan noted last week that the forward "earnings yield" of the Standard & Poor's 500 based on current forecasts is 8.1%, while high-yield bonds were at 8.3%—the narrowest spread in history (it has averaged 5.1% since 1987).
The above, of course, guarantees nothing in the short run but sets up reasonably well if your time horizon is measured in several years.
Adam
Earnings Yield
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Published :
Rating : 4.5
Published :
Rating : 4.5