Trends in the US bond market suggest that stock market bulls may be a little too excited right now. The stock market's valuation of corporate bonds and US Treasury bonds is close to the highest level in 20 years. Compared with US Treasury yields, the profit yield of the S&P 500 index is at its lowest level since 2002, which indicates that the valuation of stocks relative to fixed income products is at their most expensive level in decades.

Trends in the US bond market suggest that stock market bulls may be a little too excited right now. The stock market's valuation of corporate bonds and US Treasury bonds is close to the highest level in 20 years. Compared with US Treasury yields, the profit yield of the S&P 500 index is at its lowest level since 2002, which indicates that the valuation of stocks relative to fixed income products is at their most expensive level in decades.