6min chapter

Excess Returns  cover image

Busting 50 Years of Investing Myths | Rob Arnott

Excess Returns

CHAPTER

Rethinking Historical Returns and Equity Risk Premiums

This chapter critiques the assumption that historical excess returns can predict future equity risk premiums, highlighting the pitfalls of relying solely on past performance. It points out current market dynamics, suggesting that despite growth stocks being overvalued, small-cap and value stocks offer promising investment opportunities.

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