With U.S. Treasury and corporate bond yields rising, American investors have more options outside the equity market than they have for years, just as stocks are near their most “expensive” on a historical basis. It’s a combination that will result in U.S. households selling $750 billion worth of their stock holdings in 2023 as a new era for markets begins, according to David J. Kostin, Goldman Sachs chief U.S. equity strategist.
For years after the Great Recession of 2008, many investors lived by a mantra called “TINA”—or “there is no alternative” to stocks. The idea being that with interest rates near zero, savings accounts, U.S. Treasuries, and corporate bonds weren’t offering attractive returns, so the stock market was the only option.
