Quote from efficiency:
This a trading site. So why are you focusing (or dwelling) on yields?
The EY, reciprocal of a PE hinges on those two variables. The P is quite dynamic. The E is only dynamic four times a year.
Generally compared with risk-free Treasuries.
Are Treasuries risk-free?
Is the short end of the yield curve just above zero normal?
Simply put, interest is supposed to be the rent on money. Factor in inflation. whether admitted or genuine, and the measure is, what? Negative?
Is it going to remain so?
IF it remains so, is that a reflection of a robust economy?
There's a distinction between robust and bust.
And this jabber about the E in earnings yield under the assumption accounting is accurate.
All in all, YOU trade in PRICE not yields. So do I.