xAnts

Stocks vs Bonds: Has the Equity Risk Premium Disappeared?

The Wall Street Journal

The appeal of stocks over bonds has dwindled, with the equity risk premium, which measures the difference in returns between stocks and bonds, hitting a low not seen since the post-dot-com era. Despite this, many investors continue to flock to the stock market, driven by hopes of long-term growth and higher returns. As the global economy navigates uncertain times, the stock market volatility and bond yields are being closely watched by investors. With interest rates and market trends influencing investment decisions, the choice between stocks and bonds has become increasingly complex, making it essential to consider the equity risk premium and market analysis before making a decision.