The expected risk premium for the Global Market Index (GMI) eased in June, dipping for the first time since last December. GMI—an unmanaged market-value weighted mix of the major asset classes—is projected to earn an annualized 3.3% risk premium in the long term, which is slightly below last month’s estimate. (For details on the equilibrium-based methodology that’s used to generate the forecasts each month, see the summary below.)
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