Subject: Re: OT - Div yields and returns
If we view long-run market returns as approximated by (GDPgrowth + inflation + diviYield) and long-run gov bond rates as approximated by (GDPgrowth + inflation) then dividend yield approximates the equity risk premium, the excess we can expect (hope) to get over safe investments. Not saying this is concrete, but maybe it's "roughly right"?

Perhaps investors realised that 1% yield (dot com boom) is not enough to compensate for market volatility, and have decided to stay closer to 2% since then?

SA