LONDON (Reuters) – U.S. stocks are cheap compared with government bonds and that will probably remain the case until official U.S. interest rates peak in the middle of 2006, hedge fund firm Prisma Capital Partners told Reuters.
Gavyn Davies, Prisma founder and former chief economist at investment bank Goldman Sachs, said stocks were yielding more than bonds and the gap was too wide because U.S. corporate earnings had risen sharply over the last few years.
