Thursday, September 18, 2025

 

Bonds

Are they set

to

Outperform Stocks?

What you are witnessing over the past several years (today's date 9-17-2025) is a
Massively overvalued stock market - [S&P 500 index] - with its current dividend yield at a tiny 1.16%. There are two elements in investing. 1.) The speculative element is the price changes all determined by the opinions of the investing public. In other words the price change is held hostage by others. 2.) The investment element is the current dividend yield. Where as we can determine with far greater accuracy your return from compounding along with historical growth rate in dividends. Its not ABB...It is ABBW! Always be buying WHAT?? 1.16% as compared to long term corporate bonds paying around 5.17%. With this huge difference (as long as this huge spread continues) it will take MULTIPLE DECADES of dividend increases to catch up to this static interest rate.

Its Just Simple Arithmetic

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