proseadvocate

ETF Update: Large Cap ETFs, Euro Inflation, ETFs Above 200-Day Average

The author suggests (mistakenly) that bond yields should exceed 'equity' yields. However, his suggestion relies on recent history only. Prior to the last great bull market [beginning in 1981] yields on stocks were higher than bonds because they were not guaranteed and to attract investors to the higher risk of stocks. Perhaps investors are starting to realize that today, and therefore are demanding greater income from stocks because they have and will continue to dilute shareholder stakes by new issues and cut or eliminate dividends without warning.