Month: August 2011

Market Malaise

ICangles Investment Post….

Stocks are cheap. The S&P 500 is yielding about as much in dividends as 10-year Treasury securities. Think about that for a second. An investor can get as much income by buying high quality blue chip stocks as purchasing a ten year bond. And there is good reason to believe that for long term investors stocks will post strong capital gains over the next decade (I will get more into that in a future post). But investors can be excused for not being overly enthusiastic about the immediate prospects for stocks. Then again nothing looks like a sure thing short term–even the safe havens aren’t safe. To borrow a term made famous by Jimmy Carter during the current secular bear market a malaise has fallen over today‚Äôs market for all manner of financial vehicles to store value.