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Jamie McGeever: Wall Street ends in red, China's latest trade truce leaves investors nonethe wiser

Reuters
Summary
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75% Informative

The US and China have reached a trade deal, or at least agreed on the framework of a deal, gave markets a lift on Wednesday .

But Wall Street's gains were mild, and they were later wiped out by rising tensions in the Middle East .

In my column today I look at the 'equity risk premium' and other metrics that suggest relative U.S. equity and bond valuations are getting very stretched.

I'm excited to announce that I'm now part of Reuters Open Interest (ROI).

U.S. stocks-bonds warnings flash amber again again again.

Equity risk premium ( ERP ), the difference between equity yields and bond yields, is near historically low levels.

The flip side of equities looking expensive is that bonds look like a bargain.

But bonds are 'cheap' for a reason. Washington 's profligacy the reason ratings agency Moody's recently stripped the US of its triple-A credit rating.

VR Score

86

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92

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formal

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English

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