The Equity Risk Premium (aka, Equity Premium) is the expected return of the stock market over the risk-free rate (U.S. Treasuries).
This number basically refers to the amount an investor should expect in exchange for accepting the risk inherent in the stock market. The size of the equity risk premium varies depending on the amount of risk of a portfolio, the market, or a specific holding investment, against the risk-free rate.
The more risk an investor takes, the higher the equity risk premium. As far as history goes, survey of academic economists gives an average equity risk premium range of 3-3.5% for a 1-year horizon, and 5-5.5% for a 30-year horizon.
Analysts have popularized the notion that the 4-year presidential election cycle holds secrets to bear and bull markets
Commodities are more volatile than most assets. The supply-demand dynamics of commodities are continuously changing rapidly
Contributions to a 401(k) account are generally taken out of compensation during payroll, before taxes are withheld
Most people will be able to contribute to a Roth, but once your income hits certain limits, you may need to find another way
A Money Purchase Plan does not have to be offered to every owner, only those who are considered employees as well
Short selling is done with the help of a brokerage/custodian, who will lend you the security so that you can sell it
An A-B Trust is a plan which actually creates two trusts at the death of the first spouse, and is a strategy intended...
When foreigners purchase shares of domestic companies to add diversification it is known as Foreign Portfolio Investment
Currency in circulation tends to be defined as the currency held, without including long term deposits or investments
Run rate is an estimation of a future annual outlay or annual performance based on the most current numbers