This formula produces the same answer as the EPS ... For example, analysts will compare the S&P 500 earnings yield to bond yields when evaluating the relative return potential of equity vs.

For stocks, higher bond yields imply no increase in price/earnings ... s fiscal and trade policies, and you have the formula for sharp selloffs in bonds and stocks. These forces came to a head ...

In the U.S., it's partly due to expectations of a stronger, more inflationary future economy with bigger budget deficits.