Sentences with phrase «high equity risk premium»

«This is typical of a late cycle expansion which is another reason why multiples will be lower as higher volatility typically demands a higher equity risk premium.

Not exact matches

Comments: «In addition to forecasting positive earnings growth this year (which we did not in 2012), we are also using a slightly higher multiple to reflect the positive impact of heavy central bank intervention on the equity risk premium.»

In fact, only a permanently low equity risk premium can justify the high stock prices we now enjoy.

The equity risk premium is the higher return an investor receives, above the so - called riskless rate.

Therefore high - risk investments are compensated with higher premiums Equity Risk Premiums are also commonlrisk investments are compensated with higher premiums Equity Risk Premiums are also compremiums Equity Risk Premiums are also commonlRisk Premiums are also comPremiums are also commonly...

Currently, in the Euro Zone ex UK, the equity risk premium is already above levels seen in the European debt crisis in 2011 and closing in on the 2009 highs of close to 900 basis points.

A 6 % equity risk premium may simply be too high, which would explain why it has come down and stayed down.

The proposed momentum underlay chooses SPY, iShares S&P 500 Value (IVE) or iShares S&P 500 Growth (IVW) based on highest five - month past return whenever the equity risk premium is most undervalued.

The value of the equity risk premium (the higher returns from owning stocks rather than bonds or cash) has been in -LSB-...]

Many believe this dynamic can go on, since rates are probably going to remain low, creating a still high «equity risk premium» — the likely return from stocks over bonds.

This difference, which is called the «equity premium», reflects the higher amount of risk assumed when owning stocks.

We suggest that investors seeking higher returns consider boosting their overall equity allocation rather than chasing the illusory size premium in an attempt to add risk on the cheap within the existing allocation.

Why should we expect a larger equity risk premium from low - risk portfolios than from high - risk portfolios, especially if we're now paying a large premium for the former?

First, the historical equity risk premium was high and decades could pass before a big - enough crash, making it very costly to sit in cash.

Like the Nationwide Maximum Diversification U.S. Core Equity ETF (MXDU) launched last year, the Nationwide Maximum Diversification Emerging Markets Core Equity ETF (MXDE) seeks to deliver higher risk - adjusted returns relative to market cap - weighted strategies by creating a more diversified risk allocation aimed at capturing the full equity risk prEquity ETF (MXDU) launched last year, the Nationwide Maximum Diversification Emerging Markets Core Equity ETF (MXDE) seeks to deliver higher risk - adjusted returns relative to market cap - weighted strategies by creating a more diversified risk allocation aimed at capturing the full equity risk prEquity ETF (MXDE) seeks to deliver higher risk - adjusted returns relative to market cap - weighted strategies by creating a more diversified risk allocation aimed at capturing the full equity risk prequity risk premium.

A Review of the Evidence, in which Fernando Duarte and Carlo Rosa argue that stocks are cheap because the «Fed model» — the equity risk premium measured as the difference between the forward operating earnings yield on the S&P 500 and the 10 - year Treasury bond yield — is at a historic high.

[Tepper] said the post showed «when the equity risk premium is high historically, you get better returns after that.»

The Global High Quality Dividend Yield (GHQDY) is a diversified, risk - controlled strategy designed to target a yield premium of 75 to 100 basis points relative to yields on diversified global equity indices.

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.

That said, the risk premium factor shows that the largest gains tend to come in the southwest quadrant: low equity valuations and high Baa bond yields, which is a perfect set - up for mean reversion.

What economists call the «equity premium» — the extra return that investors demand to compensate for the risk of holding stocks — has never since been so high.

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

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

Buying stocks when expected equity returns is higher the risk free return is logical, because there is a risk premium.