EQUITY RISK PREMIUM

The 'tourist explains why he is selling stocks and buying bonds

All right, we need to speak about something that might be a little dry, but it’s important. Over the past couple of years, I’ve bored you with discussions about bond term premiums. It seemed unimportant, yet with the recent monster backup in long-term yields, they’ve risen to the forefront of investors’ minds.

But now, we have to move on to equity risk p…