1.#1 and #2 Today…Two Market Indicators…One Stocks Cheap and One Stocks 2^nd Most Expensive Ever.

S&P Dividend Yield Versus U.S. Treasuries…Above 1 is cheap

A Favorite Bullish Indicator For Stocks Is Still Flashing Green

Take a look at the chart below that shows the ratio of the S&P 500 dividend yield to the 10-year treasury yield. The ratio skyrocketed because the 10-year bond yield has plummeted, yet the S&P 500 dividend yield has remained relatively steady between 1.8% – 2%.

1. Asset Classes-Historical Average Vs. Last 10 Years

If not stocks, what else?

What about other asset classes? Take a look at the chart below, which plots each asset’s annualized inflation-adjusted return over the last decade against its long-term average. The asset that performed the worst since 2010, relative to its historical average, was gold, followed closely by international stocks and U.S. bonds.

1. Russell 2000 just had its best month ever … November’s 18.3% gain eclipsed prior record of 16.4% set in February 2000