Thus, it is more than a little troubling that the risk premium has grown to historic levels. From Barron's:
Current Yield - Barrons.com:
"THE STOCK MARKET IS PRICED FOR a recession, but the bond market is priced for a depression. So says Rob Arnott, the brainiac who heads Research Affiliates, an institutional advisory.
That's not hyperbole. Corporate bonds rated Baa or triple-B, the low end of investment grade by Moody's and Standard & Poor's designations, offer the biggest yield premium since the early 1930s, notes RBC Capital Markets.
That's a problem for pulling the economy out of the credit crisis, but an opportunity for investors."