- The risk premium -- the market's earnings yield less the risk-free rate of return -- is substantially above the long-term average reading.
- Valuations are low vis-a-vis a decelerating (and near zero) rate of inflation; indeed, the current market multiple is consistent with a 6% rate of inflation.
- A record percentage of companies have dividend yields that are greater than the yield on the 10-year U.S. note. At over 50% of the companies, that is nearly 5 times higher than in the peak of 2002 and compares against only 5% on average over the last 30 years.
Kass: Market Bottom Call (Part Deux)
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