Wednesday, November 19, 2008

How Cheap is the Market?

From Barron's:

FOR A FLEETING TIME TUESDAY AFTERNOON, the stars in the stock market were aligned in a configuration not seen in a half-century: shares yielded more than bonds.

Specifically, the dividend yield on the Standard & Poor's 500 stock index touched 3.57% at 1:13 PM Eastern time, exceeding the 3.54% yield on the benchmark Treasury 10-year note, according to Bloomberg News. That's something that hadn't happened since 1958.

This is a big reason why I think the market is bottoming right now.