Bond Yields Plunge to New Lows

What’s been happening continues to happen. This morning, the yield on the 10-year Treasury dropped to an historic low. The yield got down to 1.37% which is a post-1790 low. On September 30, 1981, the yield peaked at 15.84%.

The indicated forward dividend yield for the S&P 500 is 2.18%. That means you’re being paid 0.81% to take on the risks of owning stocks, which doesn’t include the fact that stocks like to grow their dividends.

The British markets are still reeling from the Brexit vote. The pound slid to $1.30 for the first time in more than 30 years.

Posted by on July 5th, 2016 at 11:41 am


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