5% 10-Year Treasury Yield: A Compelling Case for Bonds Over Stocks?

  • 📰 Investingcom
  • ⏱ Reading Time:
  • 41 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 53%

Portugal Notícia Notícia

Portugal Últimas Notícias,Portugal Manchetes

Market Overview Analysis by James Picerno covering: S&P 500, iShares Core S&P 500 ETF, SPDR® S&P 500, S&P 500 Futures. Read James Picerno's latest article on Investing.com

For buy-and-hold investors, the elevated yield looks compelling, at least relative to recent years, when interest rates were much lower. But the better question is:The answer depends on several assumptions, starting with the time frame. You can torture equity returns to say anything you want by changing the time window, so thoughtful analysis is critical here.

Actually, the chart above is a bit misleading because it compares real-time data without a lag. In other words, you earned 9.3% in the stock market over the past decade, but the 4.98% Treasury yield is prospective. The second chart below adjusts for this by comparing how the 10-year yield at any given point in time stacks up against the 10-year return for the S&P 500 over the subsequent decade.If you bought and held a 10-year Treasury Note a decade ago you would earned roughly 2.

No one knows, of course, since equity performance can and will vary widely. For good or ill, there’s no shortage of equity forecasts. Restrictive monetary conditions, from higher yields and tighter lending conditions, are the Fed’s “Waterloo.” If you don’t remember, the “Battle of Waterloo” was fought on June...

Resumimos esta notícia para que você possa lê-la rapidamente. Se você se interessou pela notícia, pode ler o texto completo aqui. Consulte Mais informação:

 /  🏆 450. in PT
 

Obrigado pelo seu comentário. Seu comentário será publicado após ser revisado.

Portugal Últimas Notícias, Portugal Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

How Deep Will the Current Stock Market Drawdown Go?Stocks Analysis by James Picerno covering: S&P 500, iShares Core S&P 500 ETF, SPDR® S&P 500, S&P 500 Futures. Read James Picerno's latest article on Investing.com
Fonte: Investingcom - 🏆 450. / 53 Consulte Mais informação »

Morgan Stanley drags down bank stocksThe S&P 500’s financial sector has posted losses so far this year
Fonte: MarketWatch - 🏆 3. / 97 Consulte Mais informação »

Is It Time for Utilities Stocks to Stop Stinking up the Joint?Stocks Analysis by Chris Kimble covering: S&P 500, iShares Core S&P 500 ETF, SPDR® S&P 500, S&P 500 Futures. Read Chris Kimble's latest article on Investing.com
Fonte: Investingcom - 🏆 450. / 53 Consulte Mais informação »

5 Stocks Wall Street Believes Will Stage a Remarkable Recovery in 2024Stocks Analysis by Investing.com (Ismael De La Cruz) covering: S&P 500, iShares Core S&P 500 ETF, SPDR® S&P 500, S&P 500 Futures. Read Investing.com (Ismael De La Cruz)'s latest article on Investing.com
Fonte: Investingcom - 🏆 450. / 53 Consulte Mais informação »