For much of the nine-year bull market, equity enthusiasts have repeated a mantra called “TINA” — or “There Is No Alternative.”
They’re referring, of course, to the complete and utter lack of lucrative investment options available outside the stock market.
For years, the type of risk-taking associated with owning stocks has been rewarded, and investors have responded in kind. They’ve continue to pile into positions even as they’ve grown jam-packed, because yield from elsewhere has been so scarce.
Well, there’s no easy way to say this, but TINA appears to be dead — at least if one crucial market indicator has anything to say about it.
As you can see below, the 3-year Treasury yield (1.90%) is now above the benchmark S&P 500’s dividend yield (1.89%) for the first time since 2008.