Tuesday, December 03, 2013

Bond Yields


You are probably aware that I have a long term dim view of what bond returns will be like.  If you are unsure of what I think then go read this.  Now one more argument in favor of stocks longer term over bonds comes to us in the chart above which is courtesy of Blackrock.  This chart shows that throughout most of the world the yield on equities outpaces the yield on bonds.  This just once again tilts the advantage towards stocks in my opinion.  Stocks may not go up all the time but you can still be paid to wait for the next bull run.  

One other thing notice that US stock market yield at 2.1% has more or less held constant even in the face of the market's advance this year due to companies continuing to raise dividends.