Sign In  |  Register  |  About Walnut Creek Guide  |  Contact Us

Walnut Creek, CA
September 01, 2020 1:43pm
7-Day Forecast | Traffic
  • Search Hotels in Walnut Creek Guide

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

The TARA risk from Japan

 Strategists coined the term TINA (There Is No Alternative) for describing equities as an asset class during the low-interest rate era. Now that rates have risen, there is a new acronym, TARA (There Are Reasonable Alternatives). Today, U.S. faces a TARA challenge from elevated Treasury yields.
The forward P/E ratio of the S&P 500 had been tracking the inverse of the 30-year Treasury yield in the last 10 years until early 2023 when they diverged. The forward P/E and Treasury yields rose together, which made bonds more attractive. That’s the TARA valuation threat to U.S. equities.
 
 
On top of that, there’s another emerging TARA valuation threat – and it’s coming from Japan.

The full post can be found here.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 WalnutCreekGuide.com & California Media Partners, LLC. All rights reserved.