The Inversion Worth Worrying About

In a December article for Bloomberg, columnist Nir Kaissar argues that, albeit troubling, all the hype about a potential yield curve inversion is “overdone, at least so far.” Instead, he asserts, investors should be watching the difference between the earnings yield on stocks and the yield on cash, because, “when the earnings yield has dipped below the cash yield in the past, stocks were in for a rough ride.” Kaissar cites the first such recorded… Read More

Buffett Puts Market’s Valuation in Context with Earnings Yield vs. 10 Year

In a CNBC interview that aired last month, Warren Buffett shared his thoughts on current market valuations and how he would respond to investors that feel they missed their opportunity to buy into the market. “Well, I would say they don’t know, and I don’t know. And if there’s a game it’s very good to be in for the rest of your life, the idea to stay out of it because you think you know… Read More