A great quote:
The fallacy of the model is quite simple. THERE IS NO SUCH THING AS EARNINGS YIELD. The earnings yield is simply the inverse of the P/E ratio whereby corporate earnings are divided by the price of the market. However, as an investor in a stock you do not receive the earnings yield in the form of a cash payment. However, YOU DO receive the interest yield from bonds.
If you don't know what the Fed Model is - you can check an earlier post on the subject.