eBooks
Market Valuation
S&P 500 Yield vs. 10 Year AA Corporate Bond Yield
Data Source:
- S&P 500 prices are from Google Finance
- Trailing 5-year average earnings yield based on most recent 60 months earnings data from Robert Shiller (see Excel file on stock prices)
- 10 Year AA Bond Yield from Yahoo Finance Composite Bond Rates
S&P 500 Yield vs. 10 Year U.S. Treasury
Data Source:
- S&P 500 prices are from Google Finance
- Trailing 5-year average earnings yield based on most recent 60 months earnings data from Robert Shiller (see Excel file on stock prices)
- 10 Year US Treasury Yield from Yahoo Finance Composite Bond Rates
Total U.S. Market Cap / U.S. GDP – This is Buffett’s favorite market valuation metric. According to Buffett, “If the percentage relationship falls to the 70% or 80% area, buying stocks is likely to work very well for you. If the ratio approaches 200%–as it did in 1999 and a part of 2000–you are playing with fire.”
Data sources:
- U.S. Market Cap data from World Federation of Exchanges
- GDP data from Bureau of Economic Analysis
Related links:
- Buffett’s metric says time to buy – Fortune
Data Source:
- S&P 500 prices are from Google Finance
- Peak earnings data from Robert Shiller (see Excel file on stock prices)
Related links:
P/Es & Yields on Major Indexes – WSJ.com