✉news BusinessMarkets first seen 9 h ago, last 7 h ago, peak #25
The equity risk premium has nearly vanished
Original: Historically, stocks have offered a big premium over bonds. Suddenly, the difference has almost vanished
Historically, stocks have delivered a large premium over bonds as compensation for their higher risk. Fortune reports that this gap, known as the equity risk premium, has now almost disappeared, leaving equities offering barely more than safer bonds. Analysts say the shift is unusual and raises questions about whether stocks are overpriced or bonds are unusually attractive.
Why now: A historically reliable pillar of investing strategy weakening is a major concern for markets and savers right now.
FortuneUS stock marketUS bond market
Evidence
API: https://socialmediatrends-api.osmike.com/v1/trends/334008