Fierce Competition Among Asset Classes as Yields Converge🤔
Interestingly, at the current prices, the implied yields of different asset classes have clustered at the closest range for the first time in many years. With cash, stocks, and IG bonds yielding between 5-6%, and even the 10y treasury not much off at around 4.5%, there is now a serious competition amongst different assets for your capital, and the chart below is a neat illustration of why 'cash' is now a legitimate asset class.
#Stocks #IGBonds #USTreasury #CapitalCompetition #AssetAllocation