The divide between the earnings yield for the S&P 500 and 10-year Treasurys is at its narrowest since Fall 2007—1.59%, according to an article in The Wall Street Journal. The…
Tag: Equity Risk Premium
Is the US Equity Premium Dying?
A recent Financial Times article discusses the possibility that U.S. equity premium could be impacted due to the government’s handling of the coronavirus. “It’s easy for investors to ignore problematic…
Coronavirus is Reminder of Stock Risk Premium
A recent article in The Wall Street Journal reminds investors that there’s a premium attached to the equities they own—to reward them for the additional risk they’re assuming compared to…
The Fed & The Equity Risk Premium
While the equity risk premium is currently quite high by historical standards, New York University professor Aswath Damodaran says that might not be an indication that stocks are cheap. In…
O'Shaughnessy in Buying Mode; Sees S&P 900 this Year
James O’Shaughnessy, the fund manager whose study of four-plus decades of stock market returns may be the most extensive ever done, is seeing good times ahead for U.S. stocks. In…