Stocks’ ‘Yield Asset’ Status Versus Bonds Seen as Support
Stocks have a “yield asset” status that will provide protection against any unexpected increase in bond yields, according to Robert Buckland, Citigroup Inc.’s chief global equity strategist. Buckland and his colleagues showed this in a report Wednesday by comparing developed-country shares with government debt. The yield gap between the MSCI World Index and the Bloomberg Barclays Global Aggregate Government Bond Index favored stocks by 1.89 percentage points as of Wednesday, in line with this year’s average of 1.90 points.