- After the global financial crisis, world wealth has grown at a CAGR of 5.8%.
- During the same period, the expected return on US stocks has been equal to 7.9% on average.
- This means that, during the last 12 years, the risk borne by investors has paired that of an investment of slightly more than 70% in US stocks.
|YEAR||World Wealth* $ bn||US ERP**||US T.Bond Rate**||Expected Return|
|Raw data source: * Research Institute Credit Suisse|
|Raw data source: ** Damodaran Online|
|† mid year||¥ computed: monthly average|
Analyst's Disclosure: I am/we are long put option on S&P500 index.
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