37%

Ages

16 and Up

Not in Workforce

Record 95,102,000 Americans Not in Labor Force; Number Grew 18% Since Obama Took Office in 2009

DYI:  How long will the U.S. stock market stay disconnected from reality is unknown.  What we do know world wide central banks and especially the Fed's with their sub atomic low interests and negative rates in Europe has propelled world wide monies into our stock and bond markets lifting both to obscene levels.  Only recently has the bond market rally of a lifetime cooled off with rates lifting.  This of course has placed competition between stocks and bonds.

S&P 500 EARNINGS YIELD

3.55%

 VS

 LONG TERM INVESTMENT GRADE CORPORATE BONDS

4.45%

Clearly stocks are no bargain as compared to bonds.  If rates continue to move up there will be fierce competition between stocks and bonds.  As it stands now bonds are the clear winner.  Of course the finish line could very easily be drawn by who losses the least amount of money.  My gold indicator remains purchasing bonds with short term maturities.  Will watch for any changes.

DYI