Saturday, November 16, 2013

Taper Or Not, Stocks And Bonds Could Gain [SPDR S&P 500 ETF Trust] - Seeking Alpha

Taper Or Not, Stocks And Bonds Could Gain [SPDR S&P 500 ETF Trust] - Seeking Alpha

This is an excellent article by Guggenheim's Scott Minerd.  He maintains that the 10-year bond interest rate will remain relatively low, and this will be good for stocks and bonds.  We will stay in a bull market in the near term and probably quite a while.  The author also presented a chart about the S&P risk premium, and the graph shows that the risk premium has gradually moved down since 2011 while we have been in a steady bull run.  We are still above the danger zone which will be around a 2% premium.

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