1% yield on 10-year Treasury bonds.
As of now, the volatility is high, however when VIX trades back to 20 to 25 we need to be aware of the steps that the FED an other institutions are willing to take and are taking.
Based on the foregoing, if it was not for Fed’s money printing, there are people, that I trust, confidently saying that the stock market top is in and the prior high will not be seen in a long time.
However think about 1% yield on 10-year Treasury bonds. That is equivalent to a PE of 100. In comparison, a PE of 20 for the stock market is relatively inexpensive and perhaps even a bargain. Moreover the Fed seems to be on track to cut interest rates further and print more money. Such moves will make stocks even more attractive.
