Q: My Question is about which direction stock market would move while looking at current yields of 10YR bonds at 4.4% and S&P at PE 28 [top end of average] offering a yield close to 3.8%, with a differential 0.6 there is not much incentive for investors to accept risk in the market.
Do you think bond yeilds would move lower and hence increase in differential and favouring stocks or a move other way around.
Do you think bond yeilds would move lower and hence increase in differential and favouring stocks or a move other way around.