Blue Chip LT Bonds Now Yield Less Than Stock Dividends

As the European crisis deepens, investors are looking for a less risky way to earn income on their money. Many have fled to treasury bonds in the wake of international uncertainty, but the yield on those bonds has decreased markedly in the wake of the Federal Reserve’s open market operations. Income investments are hard to come by in the current macroeconomic climate. The idea that equities are dead was reexamined by many in the financial press. The idea, originally poised in 1979, is based on the short term under performance of the asset group in tough conditions. For income investors,…