S&P 500 Equity Risk Premium The current equity risk premium suggests that investors are not being adequately compensated for the risks associated with stocks. As a result, U.S. Treasury bonds may appear more attractive than U.S. equities. Image: Morgan Stanley Wealth Management
Equity, Bond, FX and Oil Volatility Premiums Volatility premiums have significantly declined across asset classes after the U.S. elections. As election results become known, market uncertainty diminishes, leading to lower volatility premiums and increased stability. Image: Deutsche Bank Asset Allocation
S&P 500 Equity Risk Premium The current equity risk premium indicates that investors might find U.S. Treasury bonds more appealing than U.S. equities. Image: Bloomberg
Global Market Implied Equity Risk Premiums The current low equity risk premium in the U.S. suggests a challenging investment landscape, indicating that investors may not receive adequate compensation for the risks inherent in equity investments. Image: Goldman Sachs Global Investment Research
S&P 500 Equity Risk Premium Despite potential in U.S. equities, the decline in equity risk premium suggests caution is needed, prompting diversification across asset classes for risk management. Image: BofA Global Research
S&P 500 Equity Risk Premium Considering the substantial decline in the equity risk premium, which currently stands well below its historical average, should investors approach U.S. equities with caution? Image: BofA US Equity & Quant Strategy
S&P 500 Valuations – Combined P/E Ratio and Equity Risk Premium Given the S&P 500’s high P/E ratio, should investors be cautious about U.S. equities? And do they receive adequate compensation for the risk associated with owning U.S. equities rather than bonds? Image: Topdown Charts
U.S. Equity Risk Premium – Long-Term View Should investors approach U.S. equities with caution due to the significant decline in the equity risk premium, which stands well below its historical average? Image: Topdown Charts
S&P 500 Equity Risk Premium The current multi-decade lows of the S&P 500 equity risk premium suggest that bonds are relatively more attractive than equities. Image: Morgan Stanley Research
PMI vs. Equity Risk Premium The divergence between the ISM PMI and the equity risk premium is significant. Image: Morgan Stanley Research
Valuation – S&P 500 P/E, S&P Equity Risk Premium and U.S. 10-Year Treasury Yields Significant multiple expansion in the absence of a corresponding increase in earnings growth can generally be a warning sign that U.S. stocks are getting too expensive. Image: Morgan Stanley Research