Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

"Right now, the S&P 500 earnings yield is 3-times the short term treasury yield, which is the highest going back 20 years. [This means stocks are cheap relative to bonds.]

At the market bottom in 1982, this ratio peaked at 1.50--so we are twice as undervalued relative to bonds as in 1982."
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Sherlock....

The "S&P earnings yield"?????? What in the world is that supposed to represent, other than some imaginary ratio that someone found to use to make a bullish case for the markets when nothing else pointed in that direction. Think about it - what, pray tell, is an "earnings yield"???? Earnings "yield" nothing except when part is paid out as a dividends, and that is especially true of earnings that are largely imaginary and have nothing to do with reality (pro-forma, EBITDA, etc.).

Remember when the bubble bull was nearing a peak and it was getting very difficult to justify the prices of the dot.coms, so they began inventing new metrics to justify the unjustifiable?? This is the same thing - pure BS.

Just my (very strongly held) opinion, though.

mlsoft