Sep. 5 at 5:06 PM
Conservative Investing / Real Yield
Nominal yield and real yield tell very different stories right now. Gold Futures top the list at 20.61% real yield (23.91% nominal) — despite the metal itself being down 0.32% today, the inflation-adjusted return still leads everything on the board.
Meanwhile two "safe" dividend names actually show negative real yield:
$PLD (Prologis) at -0.32% and
$JNJ (Johnson & Johnson) at -0.98%. Both pay a nominal dividend (2.98% and 2.32%), but with CPI running at 3.30%, that income gets fully eaten by inflation and then some.
US Treasury yield curve is holding a normal upward slope (4.1% at 1Y to 5.25% at 30Y), credit spreads still reading Normal.
Nominal yield isn't the number that pays your bills in real terms — the gap between the two can flip which asset actually protects you.
NFA. Information for consideration only.
via Signal Yield AI — Conservative Investing
