The Mystery of Treasury Yields and Stock Market Valuation

Krótki tekst dla wszystkich rozważających decyzje inwestycyjne w oparciu o mnożniki agregowane dla całego rynku.

"The relationship between the 10 year treasury yield and the PE ratio on the S&P 500 is unstable overtime.  In theory, investors should pay more for stocks when rates are low and less for stocks when rates are high.  However, the equity risk premium tends to cloud the relationship between treasury yields and the PE ratio, and empirically speaking the relationship between stocks and interest rates is much looser than we would like to think."