FlowBank

1197 days ago • Posted by Jasper Lawler

2.5% tech earnings 'yield gap' could tank the stock market

"Since early 2018, a rise in the long bond yield has sent shudders through the stock market on four occasions: February 2018, October 2018, April 2019, and January 2020. On all four occasions, the tipping point was the earnings yield premium on tech stocks versus the 10y T-bond yield falling towards its lower limit of 2.5 percent.”

Source: Dhaval Joshi at the Bank Credit Analyst (BCA) / Zerohedge

#Stocks #Bonds
2.5% tech earnings 'yield gap' could tank the stock market
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