Authorization

BANK OF AMERICA: Stocks haven't been this attractive relative to bonds in 70 years, suggesting further gains are coming

BANK OF AMERICA: Stocks haven't been this attractive relative to bonds in 70 years, suggesting further gains are coming
Bank of America



Stocks haven't been this attractive relative to bonds in over 70 years, according to a note from Bank of America published on Thursday.




The current dividend yield of the S&P 500 is nearly triple that of the 10-year Treasury yield, which has historically been followed by stocks outperforming bonds over the next 12 months, the firm notes.




Still, despite the relative attractiveness of stocks over bonds, the highly anticipated "Great Rotation" of investors moving from bonds into stocks has yet to occur, according to fund flows.




Visit the Business Insider homepage for more stories.




Stocks haven't been this attractive relative to bonds in over 70 years. And if history is any guide, that could signal further gains ahead for stocks, according to a Bank of America note published on Thursday.
The S&P 500's current dividend yield of around 2% is triple that of the 10-year US Treasury, which yielded 0.66% as of Thursday morning.
In the current cycle, the previous three times stock yields have outpaced their 10-year Treasury counterpart, equities have outperformed bonds by 31 percentage points on average over the subsequent 12 months, according to BofA.
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Июнь 2020    »
ПнВтСрЧтПтСбВс
1234567
891011121314
15161718192021
22232425262728
2930