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Has the "worship of stocks turned into the worship of bonds," asks Sober Look, noting - as have...
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Monday, August 27, 2012, 5:07 PM ETHas the "worship of stocks turned into the worship of bonds," asks Sober Look, noting - as have others - massive inflows into bond funds at the expense of stocks. Worth a look is the disappearing spread between the average yield on 5-year corporates vs. the S&P dividend yield - one can now get nearly the same yield holding the broad stock market as holding corporate paper.
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There are too many things in the air still with Europe, China, Iran, fiscal cliff, presidential race, do-nothing Congress, etc etc. The business environment is on hold and so are investors.
I sincerely doubt most folks hiding in bonds are doing it with a 'multidecade horizon' in mind.