Historically real yields have equated to real growth rates in the US economy of about 2%. Always tied into economic growth rates over the past 100 years, annual corporate earnings growth has averaged 1.5%, slightly less than the overall economy. Today real rates of less than zero suggest zero growth for the economy and even less for corporate earnings over the next 5 years. US stock prices meanwhile, are naturally pricing in endless record earnings gains as far as the eye can see. Sound like good value? Here is direct link.
Cory’s Chart Corner
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