I had a chart ready on changes in interest rates in various bond categories. I prepared it just a few hours ago. In the famous words of Emily Litella, “Never mind.”
Bonds around the world have gotten hammered overnight, rendering the chart I did very much out of date.
Here’s a quick look at the U.S. ten-year yield to maturity versus the indicated dividend yield on the S&P 500 since the first time they crossed (after the financial crisis) in August 2011.
Each time the Treasury yield has popped over the S&P yield during this time, the S&P has been sideways to down. Is it really that simple? Or will it be just another relationship which goes with the wind and to which we say, “Never mind.”
The question of the day. (Chart: Bloomberg terminal.)
Is the investment management industry merely an organizational construct that results in useless extraction? (Useless, in that value is not added in any kind of reliable or consistent way by investment managers, and extraction, in that billions upon billions of dollars of fees are paid by clients for no value added.) Some thoughts from this particular investment professional on what the industry is and what it should be.