Div Yield > P/E and Productivity in a nutshell

Div Yield > P/E - seen any of those stocks lately? - Morgan Stanley states that stocks with a dividend yield above P/E are worth buying as they have a good track record to outperform. First thought – of course those stocks are worth buying, but hey how many are there? Forward P/E for the S&P500 is just below 13x, and quite frankly I don't know very many stocks with that kind of div yield. However, according to MS, "Expressed as a share of market cap, 2.4% of total market value currently have trailing DY > P/E, well above the long-run median of 0.7%." Apparently in Insurance, Energy and Capital Goods. Ok, I guess I'll have to take another look at that particular piece of research, but in my opinion it's never that easy.

That's productivity in a nutshell for you - According to the Bureau of Labor Statistics, Unemployment in the U.S. eased back down to 9.7% in May from 9.9% in April, but the number of new jobs added was only 431,000, in comparison to projections for payroll additions of 536,000. Well, only about 30-50% of the 2 m american jobs lost in recent years even have a chance of ever coming back. The reason anything is growing at all is because of efficiency improvements, but this growth won't produce any employed consumers. Unfortunately.