Our investment professionals share and challenge each other’s views, creating a diverse marketplace of ideas for the Wellington Blog.
Do low yields justify high stock prices? My colleague Ben Cooper recently penned a timely response to this age-old question. (Click here for Ben’s piece.) Actually, it was three possible answers — yes, no, and it depends — based on differing interpretations of the index-level data.
While I agree with many of Ben’s points, I’d like to take a somewhat different approach. My overarching view is that historical analysis of the relationship between interest rates (yields) and equity-market valuation (stock prices) is not particularly useful…
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