Mean: 16.38 Median: 15.76 Min: 4.78 (Dec 1920) Max: 44.20 (Dec 1999)
Looks expensive to me now. If stocks were to revert to mean, either earnings go up 40% or stocks go down 40%. Let's just take the middle path to be neutral. That’s at least a 10% downside to go.
Current S&P 500 Dividend Yield: 1.78%
Mean: 4.35% Median: 4.29% Min: 1.11% (Aug 2000) Max: 13.84% (Jun 1932)
Low dividend yield states that investors are betting on capital appreciation instead of dividend returns. Doesn’t bode well. The last time it went that low was in year 2000.
Current Treasury Bond Rate: 3.41%
December 23, 2010
Mean: 4.69% Median: 3.84% Min: 1.95% (Jan 1941) Max: 15.32% (Sep 1981)
The 10 year treasury bond rate is higher than dividend yield. ...
