Bond Yields and Stock Yields

Sorry for the teeny type. Here’s a chart I made showing the yield of the S&P 500 (in blue) along with the yield on the 10-year Treasury (in red).

For decades, stocks yielded more than bonds. That changed in the mid-1950s when bonds paid better yields than stocks as Americans got used to capital gains.

That relationship lasted for over 50 years, but during the Financial Crisis stocks again out-yielded bonds. They’ve stayed pretty close to each other over the last four years.

Here’s some earlier (partial) data I was able to get from FRED.

Posted by Eddy Elfenbein on January 26th, 2016 at 9:11 am

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