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“The Extra Premium for Owning Stocks Over Bonds Has Disappeared” - WSJ
”The Extra Premium for Owning Stocks Over Bonds Has Disappeared”
Title represents a provocative assertion by WSJ staff writer and / or editors. Editors sometimes create / alter titles after articles are submitted so that title may not accurately or fully reflect the writer’s intent or article’s actual content. (I am not selling any equities or equity funds due to the article.)
From the article: "The metric is based on a calculation of how much stocks yield, which is derived by dividing the stock market’s expected earnings by its price."
Not actual, expected. So analysts' dreams are part of the equation, and even with that usual boost, the yield differential is still negative.
Comments
Not actual, expected. So analysts' dreams are part of the equation, and even with that usual boost, the yield differential is still negative.