SDHY - Risk Premia Forecasts: Major Asset Classes | 2 June 2021

• The Global Market Index’s (GMI) expected risk premium held steady at 5.9% annualized in May, matching the previous month’s estimate.
• The framework for estimating equilibrium returns was initially outlined in a 1974 paper by Professor Bill Sharpe.
• Keep in mind, too, that combining forecasts via several models may provide a more reliable set of predictions vs. estimates from any one model.

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