Doug Henwood wrote:
> Enrique Diaz-Alvarez cited two bulls:
> >This means that, assuming no risk
> >premium is accorded stocks, the proper dividend yield for stocks should
> >be 0.6%.
> Average dividend yields by decade, U.S. stocks
This doesn't address their thesis: that, for the last two centuries, investors have been irrationally cautious, and that only lately have they become rational enough to realize that stocks should be treated just like T-bills. The point is that, even assuming this is true, the DOW is seriously overvalued, and they can only sustain their projections by lying about the numbers.