- The expected risk premium for the Global market (GMI) ticked up in August, reaching an annualized 6.1%, slightly above the previous month’s estimate.
- Despite the comparatively high GMI forecast, the current estimate remains well below the index’s realized risk premium for the trailing 10-year period.
- No one really knows what risk premia will be in the months and years ahead, which is why relying on forecasting alone (particularly for the short-term future) is asking for trouble.
For further details see:
Risk Premia Forecasts: Major Asset Classes - 2 September 2021