chinaco
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Feb 14, 2007
- Messages
- 5,072
With the Fed making their intentions clear and their goal keeping rates low and know that sometime in the future, rates will rise....
What is the P/E and P/B level of Large Cap Domestic Value stocks that throw off dividends where they begin to look like a decent alternative to bonds?
For example: VG high Yield Dividend Fund is a Large cap fund that has about a 3.1% yield. It holds many many large companies that are household names. It's P/E just dropped from about 14.6 to 12.6 (roughly calculated by substitution of the price) and the P/B form 2.4 to about 2.0.
Is there a point where it makes sense to take some of the fixed investment and put it in a fund like that? If so, what is the P/E and P/B level that you would need to see?
What are the other issues to consider economically or legislative (i.e., taxes) that one might consider?
What is the P/E and P/B level of Large Cap Domestic Value stocks that throw off dividends where they begin to look like a decent alternative to bonds?
For example: VG high Yield Dividend Fund is a Large cap fund that has about a 3.1% yield. It holds many many large companies that are household names. It's P/E just dropped from about 14.6 to 12.6 (roughly calculated by substitution of the price) and the P/B form 2.4 to about 2.0.
Is there a point where it makes sense to take some of the fixed investment and put it in a fund like that? If so, what is the P/E and P/B level that you would need to see?
What are the other issues to consider economically or legislative (i.e., taxes) that one might consider?