Real Yield Calculator

What real yields mean for investors

Real yields represent the true return on capital after adjusting for inflation. They are the single most important variable for cross-asset allocation because they drive equity valuations (discount rates), gold prices (opportunity cost), and credit conditions.

When real yields are deeply negative, cash and bonds lose purchasing power, pushing capital into risk assets, real estate, and commodities. When real yields are significantly positive (above 2%), they create genuine competition for equities by offering meaningful real returns on risk-free assets.

The current environment's real yield level - whether restrictive or accommodative - determines the macro regime for portfolio construction.