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

U.S. Dollar and S&P 500 Equity Risk Premium

U.S. Dollar and S&P 500 Equity Risk Premium Higher bond yields reduce the S&P 500 equity risk premium, which weakens the U.S. dollar. Image: Morgan Stanley Research

S&P 500 Valuation and Equity Risk Premium

S&P 500 Valuation and Equity Risk Premium This chart shows that the equity risk premium (earnings yield less 10-year Treasury yield) has declined to 3.9%. Image: Fidelity Investments

Equity Risk Premium

Equity Risk Premium The equity risk premium (earnings yield less bond yield) stands at 4.48% (the 90th percentile since 1985). It suggests that equities are cheap relative to bonds. Image: Fidelity Investments