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.
US stocks: US market rises on the day but falls for the week; bond yields and Iran in focus
Major U.S. stock indexes finished Friday higher, but recorded weekly declines. Investors reacted to fluctuating government bond yields and Middle East developments. Stronger services sector