What Is the Future of the Equity Risk Premium?
The video examines the elusive equity risk premium, questioning whether historical averages can guide future expectations. It notes the conventional 3.6% premium measured against bonds, but argues that extending the sample back before 1926 paints a dimmer picture of stock returns. The speaker stresses that equities remain risk assets and are unreliable as short‑term inflation hedges. Memorable lines include, “Stocks might not be a good short‑term hedge against inflation,” and, “You would have made a thousand times your money in the stock market over the last hundred years,” highlighting both caution and long‑term upside. Consequently, investors should view the equity premium as a range rather than a precise number, rely on total return metrics, and temper expectations about future risk‑adjusted returns.
Are Stocks Still Worth It? Future Returns, AI, and Market Reality
In the closing panel of the CFA Institute’s joint anniversary event, leading academics and practitioners examined why future stock returns may be lower and more uncertain than past performance suggests. The discussion highlighted a reassessment of the equity premium, the...
What Professionals Get Wrong About the Equity Risk Premium
The panel, featuring Roger Ibbotson, Elroy Dimson and Carla Nunes, examined the equity risk premium (ERP) through a century‑plus of U.S. stock and bond data and announced a forthcoming, CFA‑hosted data platform. Ibbotson described rebuilding the historic “I‑indices” after licensing...
Will Stocks Outperform Again? Inside the Equity Risk Premium Debate
The CFA Society New York hosted a special event marking the 80‑year anniversary of the Financial Analyst Journal and the 60‑year anniversary of the CFA Institute Research Foundation, centering on the question “Will the equity risk premium in a century...
Peter Lazaroff on Exams
Peter Lazaroff recounts his grueling journey through the three‑level CFA program, emphasizing how the exam’s intensity eclipsed typical weekend plans and social life. He describes the physical toll of endless essay writing and the relentless study schedule that left little...
Raluca Filip, CFA: Helping Investors Navigate Risk, Volatility, and Second Thoughts
The podcast with CFA charterholder Raluca Filip focuses on helping financial advisors guide clients through heightened volatility, hesitation, and second‑thoughts about risk. Filip explains that investors often enter markets with bullish expectations and underestimate volatility, leading to panic when portfolios turn...
Conversations with Frank Fabozzi, CFA, Featuring Iro Tasitsiomi, PhD
The interview with Iro Tasitsiomi, head of AI and investments data science at T. Rowe Price, explores how a physicist’s training shapes AI strategy in asset management. Her transition from cosmology research to quantitative finance illustrates the power of...
Roger Urwin: What a Total Portfolio Approach Looks Like in Practice
The podcast revisits Roger Owen’s Total Portfolio Approach (TPA), focusing on how the framework has moved from a niche concept to mainstream practice after the pivotal 2025 “cross‑the‑chasm” year. Owen explains that large institutional investors such as the Dutch pension fund...
Finfluencers: What Drives Them, & How Should Regulation Evolve
The CFA Live 25 conference panel examined the rise of "finfluencers" – content creators who translate complex finance topics into bite‑size social media posts. Speakers highlighted how these creators fill an information gap for retail investors, especially younger audiences,...
