Wednesday, September 2nd, 2009
Should you go with bonds? Or are shares offering enough of a risk premium?
What is “equity risk premium”, or ERP, and is it enough? In this article we’ll explore both these questions, plus have a look at three factors that create confusion around the ERP concept, and why the prospective return differential that shares offer over bonds today is far more attractive than it was at the height of the last bull market in 2007. (more…)