4 Reasons to Own Equities Now––Hodges Capital
As of March 8, 2013, the S&P 500 is expected to earn about $110 over the next 12 months. With the S&P 500 trading around 1500, the index trades at a multiple of about 13.5 times earnings. If we take the inverse of this we get about a 7.5% earning yield. Where else can you bet that type of return? Ten year treasury notes yield about 2%, corporate bonds yield about 3.25%. We believe your clients should be overweight equities until we see the discrepancy between the two asset classes shrink. […]