Sentences with phrase «future equity premium»

When everyone believes in the inevitability of stocks, à la «Dow 36,000» (we'll get there by 2025 or so), equity valuations are high, past equity performance has probably been great, and the future equity premium is small — think 1929, 1972, August 1987 and February 2000.

Focuses in its concluding chapters on the historical equity premium and on an estimate for and implications of the future equity premium.

Not exact matches

If the equity premium puzzle is real and not just luck, there is little reason to think that this generation or future generations will require less expected return for holding nondiversifiable equity risk.

We allow that short - term interest rates may be pegged well below historical norms for several more years, and we know that for every year that short - term interest rates are held at zero (rather than a historically normal level of 4 %), one can «justify» equity valuations about 4 % above historical norms — a premium that removes that same 4 % from prospective future stock returns.

Estimates of the future equity risk premium should start with historical results and then adjust for expected shifts in stock market variability and non-repeatability of unusual past cash flows.

Chapter 13 — The Prospective Risk Premium estimates the future equity risk premium for the U.S., U.K. and world markets.

Does shorting the iPath S&P 500 VIX Short - Term Futures ETN (VXX) with crash protection (to capture the equity volatility risk premium safely) work?

... formal asset valuation models (extrapolations of historical return data) provide the most (least) predictive estimates of the future equity risk premium.

«Equity Market and Treasuries Variance Risk Premiums as Return Predictors» reports a finding, among others, that the variance risk premium for 10 - year U.S. Treasury notes (T - note) predicts near - term returns for those notes (as manifested via futures).

As a forward - looking quantity, the equity - risk premium is theoretical and can not be known precisely, since no one knows how a particular stock, a basket of stocks, or the stock market as a whole will perform in the future.

The costs to the homeowner include the upfront and annual insurance premiums, as well as a share of the equity created by the write - down associated with the HOPE for Homeowners mortgage and any future appreciation in the value of the home.

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).

Does shorting the iPath S&P 500 VIX Short - Term Futures ETN (VXX) with crash protection (to capture the equity volatility risk premium safely) work?

Do not use them for borrower qualification, MI eligibility, Agency acceptance, premium rates or amounts, monthly payments, home equity or future home value.

Equity risk premium bears argue that so much of these past stock returns have been driven by increases in earnings and dividend multiples, it would be nearly impossible for a further expansion in these to contribute to future returns.

For MBIA, book value is adjusted to reflect the company's equity in unearned premiums, and for Forest City Enterprises, book value is adjusted to reflect the capitalized value of expected future rental income from credit - worthy tenants.

We allow that short - term interest rates may be pegged well below historical norms for several more years, and we know that for every year that short - term interest rates are held at zero (rather than a historically normal level of 4 %), one can «justify» equity valuations about 4 % above historical norms — a premium that removes that same 4 % from prospective future stock returns.

This roll cost of VIX futures is equivalent to the upfront premium for equity put options.

«The equity risk premium is the expected future return of stocks minus the risk - free rate over some investment horizon.

Further, he opts for premium redirection to ensure that his future premiums are also invested in the equity oriented fund.

She can choose to redirect future premiums to another fund different from Equity Large Cap Fund.

Bitcoin futures will be priced at a premium to standard Equity Index futures, but in line with the pricing conventions of other premium products.