Fun with TINA
I’ve heard today’s investing environment described as TINA. There Is No Alternative. I don’t necessarily agree that this is the case, but the argument goes something like this: US Treasurys yield around 1.50% The rest of the world is yielding zero (or less!) US stocks yield 2% and the US economy is strong Equities outside of the US have sucked for a decade and their central banks have weak hands Through this incredibly limited view (that no one should use to invest actual dollars), there is no alternative to owning US equities, especially if you are investing for income. This did get me thinking, though… Ten Years Ago Just for fun, let’s take a look at the 10-year Treasury and the S&P 500 as though they are the only two investment choices. Ten years ago, the 10-year yielded 3.85% and the S&P yield was about 2%. So $100,000 invested in…
