Present value calculations show high yields make stocks expensive; low yields make stocks cheap.

How much is that money worth in today's dollars, right? And then you can do the same thing with stocks, a present value calculation within a stocks, and there's a risk-free rate that you gotta take out, and there's also like a risk premium that you gotta add to it. So the real layman's explanation here is quite literally, when yields are very high, generally that means stocks are expensive. When yields are really low, that generally means stocks are considered cheap. Because why would I take the risk of putting my money into stocks when I can get 5% risk-free with yields? If the yields only 2%, okay, well, am I gonna be able to get more than 2% in stocks? Probably, stocks might be a good buy.