Mark Hulbert: Rising short-term bond yields won’t kill the stock market’s momentum

Are you spooked by the two-year Treasury yield rising above the S&P 500’s dividend yield? You shouldn’t be.

To be sure, many analysts disagree. They have been circulating a version of the chart below, pointing out that the summer of 2008 was the last time the two-year yield was higher than the market’s dividend yield. We all know what happened soon thereafter.

As you can also see from the chart, the two-year yield was continuously above the market’s dividend yield for the three decades prior to 2008. The S&P 500 SPX, +0.06% on balance did just fine over those decades, of course, including turning in one of the strongest bull markets in U.S.

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