Short Notes: Earnings Yield.

Just a quick thought as I was doing some math this AM.  As of right now the earnings yield on the S&P 500 is approximately 7.4%.  As a reminder the earnings yield is the inverse of the market's Price to Earnings ratio.  Earnings divided by price.  The two year treasury yields .40% and the 10 year is priced at a 2.95% yield.  The cash yield alone on the S&P 500 is currently just under 2%.

*Long ETFs related to the S&P 500 in client and personal accounts.