The bond market is quite unconcerned.
Somebody is wrong.
The stock market clearly is worried. You have to go back decades to find big stocks that are as cheap as Philip Morris and R. J. Reynolds Tobacco are now. Both trade for around five times profits. The dividend yield on Reynolds stock is over 15 percent, while that on Morris is about 10 percent. If Philip Morris's very profitable tobacco business somehow vanished overnight, leaving it with only the profits from its other operations, including Miller beer and Kraft foods, the stock would no doubt rally significantly.