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.
2017-06-21 05:36:00 Wednesday ET
In his latest Berkshire Hathaway annual letter to shareholders, Warren Buffett points out that many people misunderstand his stock investment method in seve
2021-07-07 05:22:00 Wednesday ET
What are the best online stock market investment tools? Stock trading has seen an explosion since the start of the pandemic. As people lost their jobs an
2019-07-01 12:35:00 Monday ET
Apple releases the new iOS 13 smartphone features. These features include Dark Mode, Audio Share, Memoji, better privacy protection, smart photo collection,
2019-09-09 20:38:00 Monday ET
Harvard macrofinance professor Robert Barro sees no good reasons for the recent sudden reversal of U.S. monetary policy normalization. As Federal Reserve Ch
2022-03-05 09:27:00 Saturday ET
Addendum on empirical tests of multi-factor models for asset return prediction Fama and French (2015) propose an empirical five-factor asset pricing mode
2017-12-15 07:42:00 Friday ET
Disney acquires 21st Century Fox in a $52 billion landmark deal. This deal has a total value of about $66 billion while Disney assumes $14 billion of Fox