The attached note looks at the equity risk premium – what is it and is it enough? The key points are as follows: – The equity risk premium is the excess return that shares provide over a ‘risk free’ asset like government bonds. – It is perceived that in order to compensate for their greater short-term [...]

After two weeks of very strong gains, shares are due to a pause. More broadly though, this note looks at outlook for shares. The key points are as follows: – The evidence is continuing to accumulate that shares have embarked on a cyclical recovery. – Further gains are likely: shares are not expensive and an [...]