The “equity risk premium” is the compensation investors receive *over and above the risk free rate* for taking on equity risk.
But it’s not always positive, and there have been times when this spread goes to zero or even negative . It is a forward-looking equity risk premium. The expected returns cover a 5-10-year projection period and is usually used by asset allocators for analyzing strategic asset allocations. But if you look at the chart there’s a couple of interesting tactical insights that have also been revealed.
So whether you’re looking at it from a tactical or strategic perspective, there is a clear warning and prompt to rethink asset allocation right here.CONTINUED: What About the Rest of the World?
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Investingcom - 🏆 450. / 53 Read more »
Source: Investingcom - 🏆 450. / 53 Read more »
Source: CNBC - 🏆 12. / 72 Read more »
Source: NBCNewYork - 🏆 270. / 63 Read more »