Here’s a Chart That Might ‘Unnerve’ Lloyd Blankfein

Bloomberg/Sid Verma/09-07-17

European markets might just be the epicenter for the “bubbly elements” that have left Lloyd Blankfein “unnerved.”

The Goldman Sachs Group chief executive alluded Wednesday to the risk of the protracted era of low interest rates fueling bubbles as investors turn to stocks from corporate bonds for income. Taking a closer look shows that the difference between European stock dividends and yields on low-grade debt, which inverted in 2013, recently widened in favor of stock dividends to the most since at least 2005.

…It’s all adding up to growing angst over excess exuberance for risky assets, even for Blankfein.

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