Search Results for: equity risk premium

S&P 500 Equity Risk Premium and Real 10-Year Rates Will the S&P 500 equity risk premium rise further? Image: Morgan Stanley Research

S&P 500 Equity Risk Premium (Using Breakevens) The S&P 500 equity risk premium remains much lower than it was in March 2020. Is a drawdown on the horizon? Image: Morgan Stanley Research

Global Equity Risk Premium The global equity risk premium does not show a high excess equity return over global government bonds. Image: BofA Global Investment Strategy

Russell 1000 Equity Risk Premium – Value vs. Growth Value stocks have outperformed growth stocks year-to-date, and remain more attractive than growth stocks. Image: Morgan Stanley Wealth Management

Equity Risk Premium – S&P 500 Cyclically-Adjusted Earnings Yield and 10-Year Treasury Yield The equity risk premium suggests that U.S. equities remain attractive relative to bonds. Image: Alpine Macro

Equity Risk Premium – MSCI Emerging Markets Index The EM equity risk premium is high, suggesting plenty of room for further gains. Image: Morgan Stanley Wealth Management

S&P 500 Equity Risk Premium (ERP) Goldman Sachs forecasts the ERP will fall to 4.6% this year and 4.3% in 2022. Image: Goldman Sachs Global Investment Research

U.S. Equity Risk Premium and VIX The U.S. equity risk premium remains above its long-term average, but the risk-adjusted return of equity has dropped below its long-term avearge this year. Image: Societe Generale Cross Asset Research/Global Asset Allocation

Valuation – 12-Month Forward P/E and Equity Risk Premium Despite the rise in the forward 12-month P/E ratio, the equity risk premium is in line with its long-term average. Image: Fidelity Investments

Dividend Discount Model (DDM) Implied Equity Risk Premium (ERP) Goldman Sachs expects the equity risk premium to be lower moving forward, as the macro backdrop strengthens. Image: Goldman Sachs Global Investment Research

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