Equity bulls may be a little too exuberant now


Stock earnings yield is high relative to debt yields

Stocks are close to the most overvalued against corporate credit and Treasuries in about two decades. 

The earnings yield on S&P 500 shares, the inverse of the price-earnings ratio, is at its lowest level compared with Treasury yields since 2002

Bloomberg 7 January 2025

https://www.bloomberg.com/news/articles/2025-01-07/credit-markets-signal-warning-for-a-relentless-equity-rally




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