> And on that measure, shares now look more expensive—and thus lower-yielding—when compared with bonds than they have in decades.
If one is optimistic about the private sector driving wealth creation (rather than the government), then one's view is likely that shares will still be higher-yielding on a risk-adjusted basis. Of course, other factors like time horizon and one's personal risk appetite also matter.
If, however, one is not bullish on the long-term wealth creation of American companies (and by extensions the stock market), then the question becomes where would you rather put your money? Personally, I have a hard time seeing better alternatives for the average individual.
If one is optimistic about the private sector driving wealth creation (rather than the government), then one's view is likely that shares will still be higher-yielding on a risk-adjusted basis. Of course, other factors like time horizon and one's personal risk appetite also matter.
If, however, one is not bullish on the long-term wealth creation of American companies (and by extensions the stock market), then the question becomes where would you rather put your money? Personally, I have a hard time seeing better alternatives for the average individual.