161 days ago • Posted by Paul de La Baume
Which is most attractive #stocks or #bonds? #trading #investing $QQQ #TLT #SPY
Investors are now able to buy risk-free US government bonds (Treasuries) to achieve a yield of around 4.3% (2-year US Treasury yield). Compared with the S&P 500 which offers a dividend yield of around 1.7%, investors find it more attractive to increase their bond exposure. Similarly, institutional investors or other sophisticated investors may use leverage to juice up returns using bond risk exposure instead of equity. And precisely that, could continue to pressure equities lower as investors rebalance their portfolio out of equities and into bonds.