Originally Posted by
LaserEyeKiwi
Can you elaborate?
I'm not in anyway trying to justify any sort of "extreme valuations" - I'm using the simple equations used by value investors and discounted cashflow analysts for decades to price equities & corporate bonds, which along with other fundamental analysis uses a basis point spread above the risk free rate of return offered by government bonds to assign an expected valuation. It works the opposite way as well, when interest rates rise at some point in the future, the P/E ratios on equities should fall (& dividend yields increase).
All else being equal - eg if there are no other underlying changes to company fundamentals - then a fall in the risk free return from government bonds should move a company's dividend yield down by a similar amount (by the equity value being priced higher).