Global Equity Risk Premia - 2025-05-26

Following up on last week's video in which we pointed out that the US equity risk premium is at 23-year lows... It's the same, pretty much, in all developed nations. ERPs are higher when you move from the core of development, say Germany, to the periphery, say Italy. And by extension, ERPs are higher in emerging markets, even a big one like China. If your game is to get paid for risk, be in emerging markets. If your game is to get paid for growth, be in developed markets.