Definition of 'Bond Equity Earnings Yield Ratio - BEER'
A metric used to evaluate the relationship between bond yields and earnings yields in the stock market. The Bond Equity Earnings Yield Ratio (BEER) has two parts – the top is represented by a benchmark bond yield (such as five- or 10-year Treasuries) while the bottom is the current earnings yield of a stock benchmark (such as the S&P 500).
Also known as the BEYR or the Gilt-Equity Yield Ratio (GEYR).
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