2017-03-09 05:32:00 Thu ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
From 1927 to 2017, the U.S. stock market has delivered a hefty average return of about 11% per annum. The U.S. average stock market return is high in stark contrast to the average returns on bonds, currencies, mutual funds, exchange funds, warrants, and commodities such as gold, silver, oil, and wheat.
Behavioral economists such as Nobel Laureate Richard Thaler have coined this macrofinancial anomaly *the equity premium puzzle*.
This equity premium puzzle suggests that the U.S. double-digit performance is too high to reasonably reflect the typical investor's relative risk aversion in light of low consumption growth.
While many scholars strive to resolve this equity premium puzzle with complex math models, some recent evidence suggests that the American stock market experience proves to be the exception that defies the rule of thumb.
In other words, the American stock market stands out of the international crowd in terms of long-term average aggregate performance.
Positive U.S. investor sentiment highlights the long-term outperformance of the U.S. stock market relative to many other asset classes.
U.S. stocks remain the primary investment vehicle for most global institutional investors and North American retail investors.
Information technology usage, diffusion, and proliferation have spurred the U.S. spectacular stock market vibrancy over the past few decades.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-07-17 12:37:00 Wednesday ET
Gold prices surge above $1400 per ounce amid global trade tension and economic policy uncertainty. Both European Central Bank and Bank of Japan may consider
2019-11-11 09:36:00 Monday ET
Apple upstream semiconductor chipmaker TSMC boosts capital expenditures to $15 billion with almost 10% revenue growth by December 2019. Due to high global d
2025-10-03 10:31:00 Friday ET
Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund
2019-10-11 13:40:00 Friday ET
Apple CEO Tim Cook maintains a frugal low-key lifestyle. With $625 million public wealth, Cook leads the $1 trillion tech titan Apple in the post-Jobs era.
2023-06-14 10:26:00 Wednesday ET
Daron Acemoglu and James Robinson show that good inclusive institutions contribute to better long-run economic growth. Daron Acemoglu and James Robinson
2019-08-14 10:31:00 Wednesday ET
Netflix suffers its first major loss of U.S. subscribers due to the recent price hikes. The company adds only 2.7 million new subscribers in 2019Q2 in stark