Sentences with phrase «about equity risk premium»

Scott Grannis writes this week about the equity risk premium, which I currently score as «high.»

this week about the equity risk premium, which I currently score as «high.»

Merryn: One of the chapters in your book, or part of one of the chapters, is about the equity risk premium, and you suggested it's higher than it should be, rationally, simply because of people thinking that stocks are much riskier than they actually are, because they look at short - term returns rather than long - term returns.

«The conversation about equity risk premium, interest rates and inflation, we are coming full circle.»

Not exact matches

Put simply, even taking account of current interest rate levels, and even assuming that stocks should be priced to deliver commensurately lower long - term returns, we currently estimate that the S&P 500 is about 2.8 times the level at which equities would provide an appropriate risk premium relative to bonds.

What about the argument that the equity - risk premium (the premium that investors demand over risk - free assets such as government bonds) has fallen close to zero because of greater economic stability?

In the 21st century, the ex ante equity risk premium will therefore have a geometric (arithmetic) mean of about 4.1 % (5.4 %) for the U.S., 2.4 % (3.7 %) for the U.K. and 3.0 % (4.0 %) for a size - weighted world index.

The equity risk premium is fun to know about just in case you're invited to a Bank of England cocktail party, but it can also help shape your portfolio...

In other words, if cash historically returned about 1 % a year, then an equity risk premium of +4 % would imply an average return from equities of 5 %.

At current levels, Japanese equities are both absolutely and relatively cheap; the equity risk premium is about 7.8 % and the forward price / earnings ratio is less than 13.

What we're seeing here — make no mistake about it — is not a rational, justified, quantifiable response to lower interest rates, but rather a historic compression of risk premiums across every risky asset class, particularly equities, leveraged loans, and junk bonds.

In their October 2015 paper entitled «Huge Dispersion of the Risk - Free Rate and Market Risk Premium Used by Analysts in 2015», Pablo Fernandez, Alberto Pizarro and Isabel Acín summarize assumptions about the risk - free rate (RF) and the market / equity risk premium (MRP or ERP) used by expert analysts to value companies in six countries (France, Germany, Italy, Spain, UK and U.Risk - Free Rate and Market Risk Premium Used by Analysts in 2015», Pablo Fernandez, Alberto Pizarro and Isabel Acín summarize assumptions about the risk - free rate (RF) and the market / equity risk premium (MRP or ERP) used by expert analysts to value companies in six countries (France, Germany, Italy, Spain, UK and U.Risk Premium Used by Analysts in 2015», Pablo Fernandez, Alberto Pizarro and Isabel Acín summarize assumptions about the risk - free rate (RF) and the market / equity risk premium (MRP or ERP) used by expert analysts to value companies in six countries (France, Germany, Italy, Spain, UK and U.risk - free rate (RF) and the market / equity risk premium (MRP or ERP) used by expert analysts to value companies in six countries (France, Germany, Italy, Spain, UK and U.risk premium (MRP or ERP) used by expert analysts to value companies in six countries (France, Germany, Italy, Spain, UK and U.S.).

In response to «Shorting VXX with Crash Protection», which investigates shorting iPath S&P 500 VIX Short - Term Futures (VXX) with crash protection to capture the equity volatility risk premium safely, a subscriber asked about instead using a long position in ProShares Short VIX Short - Term Futures (SVXY).

To some degree the ongoing debate about the precise level of the equity risk premium is a bit of a red herring.

By this measure, however, both Canadian indexes look more fairly valued than the S&P 500, whose equity risk premium stands at about 2.6 per cent.