It says “there’s trouble ahead”

So . . .

Stock dividend yields lower than inflation, bond rate yields lower than inflation.

So . . .

With ascending stock prices having resulted in real gains (capital gains) and investors shunning negative-real-yield bonds, money keeps pouring into stocks. The Catch-22 is that every rise in the prices serves to drive the dividend yield even lower. Right now it’s at the lowest it’s ever been except for a couple of months at the peak of the tech-stocks bubble in 1999–2000.

So . . .

When the ascent finally stops, all returns will be negative in real terms for a whole historical period.

That spells trouble for the capitalist system.