A Challenging Narrative

Stocks may be attractive when compared to bonds. But there are reasons to doubt the low yield, buy stocks narrative.

There is a wonderful narrative going around Wall Street that goes something like this:

“Sure, stocks look pricey but with bond yields so low, they’re still a good bet.”

On the one hand, this makes sense. Who wants to invest in bonds or put money in the bank when interest rates are so low? Who wants to grab a 0.6% yield when you could make 10% or more in …