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The yield on the 10-year Treasury fell below 2.7%. That’s lowest on the daily records which go back to 1962. The monthly records go back further so it’s the lowest since 1955.

With the S&P 500 currently around 845, this means that index only needs to get to 1073 over the next ten years to beat the Treasury bond. That doesn’t include dividends and the yield on stocks may be higher than 2.7%. (Some in the media have said that the S&P’s yield is already above long-term Treasuries, but I’d rather see how dividend payouts fare in the coming months before I’d say it’s true.)

Posted by edelfenbein at December 2, 2008 12:49 PM