With bond yields surging to 4.7%, T-notes are looking like a better deal than the pricey S&P, says the Research Affiliates’ formula
Research Affiliates, an investment firm managing $188 billion, suggests that current high valuations make U.S. large-cap stocks, particularly growth stocks dominated by the "Mag 7," a poor investment over the next decade. Their model projects meager returns of 3.2% for U.S. large caps and even less for large-cap growth, which trails inflation. In contrast, the firm's analysis indicates that U.S. Treasuries and even cash offer more attractive returns, with intermediate Treasuries projected to yield 4.6% annually. AI
IMPACT Investment outlooks are not directly related to AI operations or development.