Bonds
S&P 500 Haters Now Make Enough in Treasuries to Bid Stocks Farewell
- Six-month Treasury bill yield nearly equal with S&P 500 payout
- Fear of missing on big equity gains is haunting managers: Ren
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Surging bond yields have been rattling investors for a year. Why they’re a problem for people hooked on an asset as volatile as equities can be seen by juxtaposing stocks with some of the safest securities in the world.
Treasury bills are rarely cast as a route to riches, but right now their payouts are nearly as high as a similar marker in the equity space: profits generated by S&P 500 companies. While the comparison isn’t quite apples-to-apples, it’s a model sometimes employed to get a sense of relative value across asset classes.