BONDS versus EQUITIES

Who is wrong ¿?¿?¿?¿?

As Michael Santoly said  in Barrons this week : ““It’s for good reason the stock market was dubbed “the bond market’s idiot kid brother.”

Morgan Stanley : “Telling a similar story in a different way, the dividend yield of the Dow Jones Industrial Average components, at 2.65%, is essentially equal to the 10-year Treasury yield. The folks at Morgan Stanley note that over the past 50 years the Dow’s yield has exceeded than of the 10-year Treasury for only one period—the end of 2008 into early 2009, as the financial crisis climaxed.”

It seems to us that Fixed Income traders are staying a lot more rational than Equities crowd !!!