Equity Risk Premium

Fewer and fewer stocks are participating in this rally. Investors need to be cautious here

It is simpler to use PE ratios to value stocks than the "Fed" model of the equity risk premium.

Bond yields and earnings yields have converged for the first time since the global financial crisis. Why? Implications for asset allocation.

ERP Valuation Indicator: This is an important chart for global equities. Despite some reduction in valuations (e.g. PE Ratios have fallen), the issue is that bond...

“De-risking” is the buzzword du jour on Wall Street, where hedge funds and their ilk are cutting positions, selling stocks and covering shorts. So-called degrossing...

Fed sweet spot indicator: Rate hikes, all else equal, tend to be bad for risk assets in that it incrementally removes monetary tailwinds, raises the discount rate...

Equity risk premiums are little bit less than 4% more than bonds over long periods. The two major drivers of high equity returns are falling interest rates and high...

A recent magazine cover highlights the current mood in stock markets. The collapse in March seems like a distant memory given that most stock market benchmarks around...