One strong headwind to equities, as I have been noting all year, is the relationship between a multi-decade low S&P dividend yield of only 1.07% compared to a multi-decade high in the 10-year Treasury yield of 5.28%:
Another way to look at the pressure from higher rates is to compare the 10-year Treasury yield with the S&P 500’s dividend yield. That ratio currently stands at about 5.3x, its highest reading since the late 1990s. In other words, the 10-year Treasury now offers a yield roughly… pic.twitter.com/cvCrdldmWt
Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality.
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