Monday Radio Rallies & Reversals
Markets are rallying on strong data out of China. Investors are moving to riskier assets. Consequently gold and the US $ are under pressure.
When forecasting where we see the economy and markets going in the future, we look to technical indicators to provide some clues. Earnings yield is one such technical indicator, and when its level is higher than T-Bill rates it has historically resulted in positive returns for the equity markets. Franklin Templeton reported "the reading today has not been this high since the early 1980’s so it’s a very bullish signal in our opinion"
When forecasting where we see the economy and markets going in the future, we look to technical indicators to provide some clues. Earnings yield is one such technical indicator, and when its level is higher than T-Bill rates it has historically resulted in positive returns for the equity markets. Franklin Templeton reported "the reading today has not been this high since the early 1980’s so it’s a very bullish signal in our opinion"
posted by David Allard at
10:43 AM
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