Equity markets and equity risk premium (ERP)
Sorgem Evaluation regularly monitors equity markets across several geographical areas, particularly as part of its analysis of equity risk premium (ERP).
It is noteworthy that most major indices have performed well over the short, medium and long term, which is a rather rare occurrence.
However, rising indices do not automatically imply a decline in the ERP demanded by investors: changes in earnings prospects (growth, margins, sensitivity to interest rates, etc.) remain a key factor in assessing risk and expected returns.
Thomas Hachette, Partner & Etienne Langer, Director
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