Salient to Investors:
Louis Navellier says:
- Bill Gross couldn’t be more wrong in predicting lower future equity returns and that equities cannot return more than U.S. GDP growth because the stock market is much more attuned to earnings than to U.S. GDP growth. Nearly half of the S&P 500’s revenues are generated globally versus 30 percent 10 years ago.
- Stocks are cheap and bonds are expensive. The S&P at 14 times earnings yields just over 7%, close to a record high relative to 10-yr T-bond yields, and more than T-bonds for the first time in 55 years.
- As investors chase yield, liquidity will improve and money will pour into the market as it has no other place to go. Demand for dividend stocks will continue for years.