since we're seeing risk free rates such as CD, short to mid t bills, savings and other risk free investments yielding anywhere from 4 to 5%+, then it really doesn't make much sense to be in equities unless if they yield at least 4-5% say in the next 1-2 yrs, based on the maturity rates of these short and mid term investments. The risk premium shifts, but considering possibly more volatility, it seem that we should expect more from equity returns in exchange for the higher risk than the other assets. it seems that some people believe the risk free rate will decrease soon if they cut the rates or something, or if everyone crowds into the risk free space to drive down the rates, so that is partly why the yield inversion still persistent but there's no indication that theres been other effects. Some people are putting into mid to long term bills. But the short term rate remain high, so short term its not attractive in stocks, it would take more return from equities or people could just invest in Bonds and CDs.
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