Leading indicators suggest caution for equity investors

ET Intelligence Group: Even as the soaring stock market lures investors, caution is in the air with several leading indicators turning unfavourable including the gap between earnings yield and bond yield, market cap-GDP ratio, standard deviation of index returns, and slowing pace of earnings upgrades. The gap between earnings yield, which is the inverse of price-earnings (P/E) multiple, and bond yield has crossed 194 basis points compared with