WHEN THE MATH CHANGES

The 'tourist reviews why he is selling stocks and buying bonds

We all know how brutal the bond bear market has been. Decline-of-the-century type returns.

I wrote about the relationship between stocks’ earnings yield and interest rates in THE EQUITY RISK PREMIUM, but since then, the bear market in bonds has continued with the US 30-year yield rising from 4.75% to 5.09%. This occurred during a period of elevated vola…