U.S. stocks “may be near their ultimate bottom” and already account for a recession, LPL Financial Corp. wrote in a blog post Thursday. The firm cited the equity risk premium, or the difference between the earnings yield on the S&P 500 and the yield on 10-year Treasury notes. Monday’s premium amounted to 5.65 percentage points, the widest since July 2012. The premium was derived from an earnings yield, the inverse of the S&P 500’s price-earnings ratio, of 6.37% and a 10-year yield of 0.72%
No comments:
Post a Comment