equity risk premium


Eurozone Overweight Supported By Risk Premium

A decent rebound in eurozone equities in recent weeks brought up concerns that the market might already be overvalued by now. Julius Baer’s research clarifies that “valuation is not the main driver of our asset allocation as earnings definitively remain more important”. However, valuation is easy to observe and thus attracts quite some attention. One of the measures they are following is the equity risk premium.