The torrid run in global stocks has pushed equity-market valuations back toward the 20-year average vs. bonds. Relative to global corporate yields, equity-earnings yields are a hair above the average, and compared with Treasuries, stocks have crossed into slightly expensive territory. The 3.7% yield on global equities is 203 bps above the Bloomberg Barclays Global Aggregate Corporate and compares with the global Treasury yield of 0.5%. The cycle-average equity-earnings yield premium to corporate credit is 1.8%, and 3.5% to Treasuries. Earnings near a trough distort yield as a valuation measure. Yet stocks have re-rated in-line with global bonds, leaving the next leg of the equity-market rally dependent on economic recovery.