Given our view that a stock market bubble will inflate in the US, we wouldn’t be surprised to see the equity risk premium (ERP) shrinking further in the near term. This might even go as far as the premium vanishing, as happened for instance at the peak of the dot-com bubble.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services