EDITOR'S NOTE
Stocks erased some earlier gains Tuesday thanks to a worsening recession indicator from the bond market — the 10-year yield hitting its lowest level against the 2-year rate since 2007.
But there's now a new type of "inversion" that might be a good sign for equity bulls. For the first time since the financial crisis, stocks are earning more for investors than key long-term Treasury notes. The U.S. 30-year yield dropped below the S&P 500′s dividend yield on Tuesday. It's the first time since March 2009 — when the world was deep into a recession — that has happened, according to data from Bespoke Investment Group.  An inversion of any type might sound ominous, but this one is likely a good thing for stocks. For an investor aiming to hold something for the long term, equities are looking relatively attractive, according to Bespoke co-founder Paul Hickey.
"The takeaway is, if you can get an annual yield from a company that's going to pay you more than the 30-year Treasury and the company has a history of raising its dividend, for the long term, it's a better alternative than a Treasury," Hickey said.
JJ Kinahan, chief market strategist at TD Ameritrade, also says the hunt for yield might help support stocks — at least in the near term. Investors will continue to seek out more "safe stocks" — particularly those in the S&P 500 that offer an attractive dividend but have less perceived downside risk in a trade-related sell-off. TOP NEWS
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