Stock Market Investors Just Got a Warning From the Federal Reserve. History Says This Will Happen Next.
The Federal Reserve recently warned investors that the S&P 500's equity risk premium was near its lowest level in decades.
Overview
The S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) have added 13% and 14%, respectively, this year. The driving force behind those gains has been strong corporate earnings growth, particularly among technology companies.
However, the Federal Open Market Committee recently published the minutes from its July meeting, and they included a warning for investors: The S&P 500's equity risk premium is near its lowest level since the dot-com bubble, which means Treasury bonds are more attractive on a relative basis than they have been for decades.
Details
History says that could sink the stock market.
Source
Originally published at www.fool.com.