Friedberg argues 10% pretax treasury yields make high P/E semiconductor stocks unattractive comparatively.
“I could now buy a US government bond that pays me 10% pretax a year. Why the heck would I pay 50 times earnings for semiconductor stock?”
Friedberg reports thirty-year treasury yields crossed 5.2%, highest since 2007 financial crisis.
“If you take a look at the thirty year treasury yield, we just crossed 5.2% the in first twenty years.”