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"High-yield bond yields are lower than the S&P's earning yield for the first time ever,"...

  • Saturday, January 19, 12:30 PM ET
    "High-yield bond yields are lower than the S&P's earning yield for the first time ever," says a very bullish Oscar Schafer at the Barron's Roundtable (earlier). He says no one is talking about stocks at cocktail parties, but he does hear conversation about fixed income (that's some party). Pension funds hiding in bonds for "riskless returns" are in for a surprise.
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This news story has 7 comments:

  •  
    Utter lunacy. People have not learned from history, and what happened to those that embraced bonds in 1946. If inflation becomes serious, these investors are going to be very disappointed as stocks should offer superior returns compared to fixed income bonds.
    19 Jan, 12:57 PM Reply Like
  •  
    Manufacturing is returning to the USA. Oil prices are holding up. Railroads and truckers will benefit from that along with the manufacturers. Precious metal prices hold up. Bad time stocks like bottlers are at favorable price levels. There are position to take.
    19 Jan, 01:03 PM Reply Like
  •  
    Yup, hecky, as I said elsewhere, the sky is all clear now. Go ALL in!

    Go now; go, go, go.
    19 Jan, 02:28 PM Reply Like
  •  
    Reminds me of the bull market bubble we just experienced.All bubbles eventually implode.Counterfeit money=American dollar. Observe the German repatriation of Gold!
    19 Jan, 02:08 PM Reply Like
  •  
    New HY investors are suckers. But one is born every minute.
    19 Jan, 02:55 PM Reply Like
  •  
    He must be going to cocktail parties for dumbos,all I've heard for a year is us equities are cheap relative to bonds,don't fight the fed,markets are going up due to qe,companies have massive cash reserves that need to be deployed,s & p yield is higher than bonds.With the markets at 5 year high I reckon the bulls are starting to talk up equities and that's where private investors are going to get burnt in the next couple of years if they suddenly decide its time to get risky.I am not a bond bull at these levels but diversification is key not all assetts in one place
    19 Jan, 04:08 PM Reply Like
  •  
    Rising interest rates will kill more than the bond market--they will cripple us through our debt, wreck the "recovery", and send equities to hell--Just another extreme at the top
    19 Jan, 05:49 PM Reply Like
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