VIX (Volatility) and Implied Equity Risk Premium

VIX (Volatility) and Implied Equity Risk Premium The risk of a correction is rising, as the implied equity risk premium is now below what the VIX would suggest. Image: Fidelity Investments

S&P 500 Equity Risk Premium – 2020 vs. 2009

S&P 500 Equity Risk Premium – 2020 vs. 2009 Same equity risk premium in March 2020 as March 2009, but 30% higher P/E thanks to the level of rates. Image: Morgan Stanley Research

S&P 500 – Equity Risk Premium

S&P 500 – Equity Risk Premium This chart suggests that the S&P 500 looks attractive relative to bonds. Image: SunTrust Private Wealth Management

S&P 500 Equity Risk Premium

S&P 500 Equity Risk Premium The equity risk premium has increased significantly, while the 10-year Treasury yield has fallen. Image: Morgan Stanley Research

S&P 500 Next Twelve Month Equity Risk Premium

S&P 500 Next Twelve Month Equity Risk Premium Chart suggesting that the S&P 500 NTM equity risk premium remains well above its long-term average. Image: Morgan Stanley Research