Asset Class Historical Yield Comparison

by: J.D. Steinhilber

T-bill yields have risen from the excessively low levels seen over the past three years, but yields from other income-oriented asset classes (including REITs) have remained near the low end of their ranges since 1/94. In contrast, earnings yields from the equity asset classes are in the upper end of their ranges. [click to enlarge]

Note: When assessing prospective returns from the asset classes shown above, it is important to note that while the current yield of a fixed income investment typically captures the vast majority of the prospective return, current earnings yields on equity investments do not capture the impact of rising (or falling) earnings on the total return.