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You Can Now Get 7% From Bonds, So Why Own Stocks?

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ticker lesson

Breakdown

0:00QQQ· ticker

QQQ yields over 7% with A- minus rated products

  • BlackRock manages $15.5T
  • Rick Rieder says 7% yields
  • A- minus rated products
  • Microsoft bonds pay over 6%
  • Better credit than US government
2:02SPX· ticker

SPX returns 12.6% since 1991 with 10-year yields over 5%

  • Stocks returned 12.6% since 1991
  • 10-year yields over 5%
  • Stocks now earn less than 10-year
  • Last gap this wide in 2002
4:02VIX· ticker

VIX in contango with flat futures

  • Volatility futures in contango
  • V contract at 1685
  • Z at 1855
  • F at 1873
  • G and M at 1975 and 2027
6:00SPXA50R· ticker

SPXA50R rebounds to 50% above 50-day moving average

  • SPXA50R at 50%
  • October had 22% above 50-day
  • Concentration risk in small names
  • Market more evenly distributed
6:01SPX· ticker

SPX at 7735 with put skew

  • SPX at 7735
  • Put skew at 7635 put
  • Call premium at 7835
  • Put skew indicates downside risk
  • 27% probability of being in the money
6:02lesson

Market perception of downside risk

  • Put skew indicates velocity risk to downside
  • More hedging on downside
  • Call premium still heavily bid
  • Market may move 100 points up or down

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