Back to Normal? Not So Fast…
Just as most restaurants and business in cities with the most stringent COVID precautions/restrictions started to re-open, some of those locations are introducing new COVID precaution/restriction measures.
For example New York City mayor Bill de Blasio recently announced mandatory vaccinations for all newly hired NYC government employees and for anyone wishing to eat inside a NYC restaurant or visit a NYC gym or entertainment center (article here). How will these new mandates impact business and the economy going forward?
As of July 31st, according to S&P Dow Jones Indices, the S&P 500 index of US stocks is up 17.0% year-to-date (YTD). The stock index has an average dividend yield of 1.4%.
Yields on the US Ten Year Treasury Bond dropped to 1.20% by 7/31/2021 and the S&P US Aggregate Bond Index, is down -0.3% YTD. The bond index has a yield-to-maturity of 1.2%.
The chart below highlights recent prices, total returns (total return always includes dividends), dividend yields, and trailing and forward-looking P/E’s (price-to-earnings ratio) for several S&P Dow Jones Indices.
|Forward Estimate P/E|
|S&P US Aggregate Bond Index||-0.3%||1.2%||
*Statistics for S&P 500 index, DJIA index, and S&P US Aggregate Bond index from S&P Dow Jones Indices.