Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

Excess Cape yield on S&P 500

[Torontojay]

The real earnings yield on the S&P 500 is 2.65%. This is simply the inverse of the Shiller P/E ratio. The excess Cape yield is the difference between real returns for the S&P vs the yield on a 10 year real treasury rate. The current 10 year Tips is yielding 2.23% which is what investors should expect to earn on a 10 year treasury note after you adjust for inflation. The difference between the real earnings yield on the S&P 500 and the 10 year Tips is 0.42%. In other words, investing in the stock market over the next 10 years will improve your "real" returns by only 0.42% which is historically well below average. Put another way, without taking on any risk over a 10 year horizon, you can achieve similar returns to the S&P 500 by simply buying a 10 year treasury note. 

Is the stock market over valued? I don't know you tell me. 

https://fred.stlouisfed.org/series/WLTIIT

https://www.multpl.com/shiller-pe

[DZtrader]

Wow..............I say this with the absolute least intent of any bravado but save and accept for the rarest of years, I don't think I have ever returned less than 10 percent overall annual return. All the power to those index fund type investors but without risk and at least a little bit of knowledge, not sure the stock market is ideal. If however you want to acquire a bit of knowledge and