Wall Street Bets on High-Yielding Cash Deals in Fresh Blow to Stocks
- Treasury bills now yield more than S&P 500’s earnings payout
- Need to ‘justify’ owning stocks over risk-free cash: Clissold
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The stock market is buckling under the weight of a simple equation: cash earns more than equities.
Currently, six-month Treasury bills yield about 5.5% — the highest since 2001 — compared to the S&P 500’s earnings yield of roughly 4.7%. That’s the biggest advantage that cash has enjoyed relative to equities since 2000, according to data compiled by Bloomberg.