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2022-01-08

$10.2 trillion. The amount of bonds globally that have negative yields - TINA

The reason this number is important is because it speaks to perhaps the single-biggest reason stocks seemingly never go down anymore, or not for long if they do, and that is because there is no alternative.

S&P 500 trading at around 26 times earnings, stocks are always expensive — or cheap — for a reason. 

And one big reason is the outlook for earnings. The S&P 500 is expected to generate record profits per share of around $220 this year, up from an estimated $209 for 2021.

The extra yield investors demand to own junk bonds rather than risk-free Treasuries is lower than this time a year ago. That’s a sure sign that bond traders are confident that the outlook for corporate America is bright. 

Robert Burgess Bloomberg January 7, 2022

https://www.bloomberg.com/opinion/articles/2022-01-07/-10-trillion-in-negative-yield-debt-should-bolster-stocks


Buy stocks because bonds have so low yields.

Buy bonds because the stocks are so high.

https://englundmacro.blogspot.com/2021/12/buy-stocks-because-bonds-have-so-low.html


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