Here's a Chart That Might 'Unnerve' Lloyd Blankfein
- Dividend yields outpacing European bonds by most since 2005
- Deviation from the norm also driving demand for U.S. stocks
Lloyd Blankfein, chief executive officer of Goldman Sachs Group Inc.
Photographer: Scott Eells/BloombergThis article is for subscribers only.
European markets might just be the epicenter for the “bubbly elements” that have left Lloyd Blankfein “unnerved.”
The Goldman Sachs Group chief executive alluded Wednesday to the risk of the protracted era of low interest rates fueling bubbles as investors turn to stocks from corporate bonds for income. Taking a closer look shows that the difference between European stock dividends and yields on low-grade debt, which inverted in 2013, recently widened in favor of stock dividends to the most since at least 2005.