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Victor Haghani, Founder and CIO, Elm Partners

Alpha Exchange

CHAPTER

The Perpetual Tips Rate Isn't a Benchmark Anymore

The excess expected return of equities to a very long horizon on the global basis is like six point nine %. So we would realize that this isn't working, if this doesn't make sense any more,. We would say what we really need to think about is a perpetual tips rate which we can't see because it doesn't exist. Perpetual tip couldn't trade at a negative yield because it would have an infinite price. And now we're saying, w equities are offering a one % real return in the long turm. The perpetual tip is offering a point one % or something, or point five %. Oh, equitys really aren't offering us the value that we

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