Despite Record S&P 500 Dividends, Yield Stagnant But Better Than 10-Year T-Yield

posted in: Credit, Economy, Equities | 0

S&P 500 companies are doling out record dividends.  Because the index has rallied massively, the dividend yield continues to linger around two percent.  This is still better than what the long end of the sovereign bond market is yielding, helping … Continued

Housing Relative Bright Spot In Otherwise Sub-Par Recovery, But Sustained Price Rise Risk

posted in: Credit, Economy | 0

In an otherwise lackluster post-Great Recession recovery, housing has provided decent support to the U.S. economy.  The only question is durability – or a lack thereof. Off post-bubble lows, sales of existing homes increased from a seasonally adjusted annual rate … Continued

Ignore Positive Spread Between SPX Dividend Yield And 10-Year Treasury Yield As Signal

posted in: Economy, Equities | 0

As the third quarter ended, S&P 500 companies were yielding a touch higher than the 10-year Treasury yield – something equity bulls have been stressing to highlight how cheap stocks are.  Is it that simple? Last quarter, the four-quarter rolling … Continued

Any Connection Between ZIRP And U.S. Consumer Spending?

posted in: Credit, Economy | 0

U.S. consumer spending, accounting for >2/3rds of economy, key to growth Over last eight years, bank deposits have grown 80 percent But interest income suppressed due to ZIRP Do consumers always benefit from low interest rates?  At first glance, that … Continued