Tail Risk Hedging | Nassim Taleb, The Fed, Macro 'Investing', Faith Based Alpha & Antifragility
Pirates of Finance
00:00
Why I Don't Believe in the Equity Risk Premium
The equity risk premium has been negatively correlated to the level of the risk free rate. When rates are really low the equity risk premium is high and when rates are really high it's low. So I would expect people to pile into equities when rates arereally low driving the equity riskPremium down, but just the opposite when rates areReally high which is what this behavioral study suggests.
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