Last year, Evidente published a report entitled The Dangers of Safety, which suggested that there had been an extended period of a rising equity risk premium. Since mid-2016, there has been a reversal of this trend, with the risk free rate moving higher and risk premium moving lower. In this post, Evidente suggests that a continued fall in the ERP will likely be associated with a revival of animal spirits in the US corporate sector, a long anticipated capital boom and ultimately compression of profit margins and the profit share in the United States from levels that are currently close to record highs. (VIEW LINK)
Founder of Evidente, Salvatore Ferraro, is a top rated quantitative analyst and has over 17 years of experience in financial markets, with investment banks, Goldman Sachs and Merrill Lynch, providing advice on best practice to portfolio managers...
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