Attention Economy


Tuesday, February 28, 2023

The Decline in ERP

Buying stocks is just not worth the risk today, these analysts say. They have a better way for you to get returns as high as 5%.
https://www.marketwatch.com/story/buying-stocks-is-just-not-worth-the-risk-today-these-analysts-say-they-have-a-better-way-for-you-to-get-returns-as-high-as-5-2758e4f1
As inflation and expectations of a more difficult economic environment weigh on expectations for corporate profits, the nearly guaranteed returns offered by Treasurys has soared. This means the equity risk premium is once again finding use as a gauge of relative value for stocks, since it can offer helpful insights about what investors stand to gain over the short term by taking the additional risk that comes with buying stocks, or investing in stock funds.