When yields on government bonds exceed the dividend yield of the S&P 500 by 6% or more, sell your stocks and buy bonds.
The 10 year is at 3.39% and the S&P 500 yield is 1.73%.- 4/28/2011
3.39-1.73 = 1.66.
1.66/1.73 = 96%
The yield on Govt. bonds is 96 percent higher.
The 10 year is at 3.39% and the S&P 500 yield is 1.73%.- 4/28/2011
3.39-1.73 = 1.66.
1.66/1.73 = 96%
The yield on Govt. bonds is 96 percent higher.
No comments:
Post a Comment