To check if stock or bond going to lead the market?

One way is to check the earnings yield of the equity market. It means the amount of corporate earnings an investor is purchasing for every $1 he or she is buying in equities. To calculate the stock market's earnings yield, simply take the inverse of a stock market's price-to-earnings ratio. If EPS=$50 Price=$1000 Earnings yield=EPS/Price =$50/$1000 =5% Compare this earnings yield for stock against bond yield. If bond is yielding more than the earnings yield of the stock market, then bond would appear more attractive than stock at the moment, since an investor could earn more per yield through bond than he or she could in corporate profits in stock.