We can extrapolate the picture even further out in time when we look at US 30-year bond yields which are trading under 2% yet the average return of the ASX over the last 40 odd years is above 11% including dividends, while for its more direct relative the Dow it’s just shy of 11% over both 30 & 50-years i.e. with bond yields at current levels the equity story remains attractive.
MM is neutral / bullish US bond yields around current levels
