Trillion-Dollar Earnings Yield Keeping S&P 500 Out of Fed Reach
- Stock markets have rallied as the Federal Reserve hikes rates
- Earnings, dividend yields keep investors glued to equities
Draghi Seen as Top News Maker at Jackson Hole
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If we’ve learned anything after 21 months of Federal Reserve tightening, it’s that $1 trillion a year in corporate earnings provides the S&P 500 with a daunting buffer.
How else to explain the stock market’s ability to whistle past four interest rate hikes and climb to records, a feat that may come up at this week’s meetings in Jackson Hole, Wyoming? Central bankers tighten, political tension escalates, valuations swell -- and the market skates along on one of the sturdiest foundations of profit ever amassed.