The spread reached a high of 236 bps in December 2022. Historically, spreads in excess of 200 bps yield negative returns in the medium term. A lower spread between the earnings yield and bond yields suggest investment in equities will be beneficial.
Citi downgrades US stocks to ‘neutral’ as AI sell-off, regulatory risks mount
Citigroup strategists have downgraded US equities to neutral due to ongoing market volatility and regulatory concerns. This decision follows a significant sell-off that erased $3
November 9, 2026