S&P 500 went nowhere in July. 10-year treasury climbed from 4.45% to 4.74%. Tech and AI got hit, war fears and slowdown worries came back.
Equity risk premium now sits at 4.23%. Expected return on the index: 8.97%.
Rising rates, falling stock prices — classic compression. The market's telling you it wants more compensation for risk. Whether 8.97% is enough depends on what you think earnings will do from here.
Equity risk premium now sits at 4.23%. Expected return on the index: 8.97%.
Rising rates, falling stock prices — classic compression. The market's telling you it wants more compensation for risk. Whether 8.97% is enough depends on what you think earnings will do from here.