tag:blogger.com,1999:blog-8152901575140311047.post5908919281898873182..comments2019-03-25T09:51:50.296-04:00Comments on Musings on Markets: January 2019 Data Update 1: A reminder that equities are risky, in case you forgot!Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8152901575140311047.post-48818929168046559442019-02-01T11:36:43.848-05:002019-02-01T11:36:43.848-05:00Dear Professor,
Thanks for the continuous update o...Dear Professor,<br />Thanks for the continuous update on data on your website.<br />A quick question as I am a bit confused with the various ERP values you put on your frontpage monthly.<br />Could you add a quick comment (or a video or...) what is the difference in essence between those values ?<br />Based on the forward looking calculation you explained in class, I take as ERP for valuation the trailing 12 months cash yield value (5.96% in Jan '19) but I may be wrong (or inconsistent).<br />Thnaks for your help.Franckhttps://www.blogger.com/profile/11152091086428728450noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-60955357543977646912019-01-09T01:33:07.442-05:002019-01-09T01:33:07.442-05:00Dear Professor,
I might be missing something, but...Dear Professor,<br /><br />I might be missing something, but it seems the unit adjuster that you use for quarterly earnings is outdated, since it refers to 2016, not 2018.<br /><br />Kind regards,<br /><br />TimTimnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-57150188921245123092019-01-04T08:23:08.713-05:002019-01-04T08:23:08.713-05:00Hi,
great article and very interesting. I tried t...Hi,<br /><br />great article and very interesting. I tried to rebuild the ERP myself. However I got some questions.<br /><br />Where do find the number on the expected earnings growth for five years. I got Bloomberg and see it for Y+1, Y+2 but not for a longer time frame. ?<br /><br />How can I come up with the split Dividends and buybacks? I don't see a buyback number in Bloomberg?<br /><br />thanks for your help,<br />Hennerhennerhttps://www.blogger.com/profile/15381506750678483901noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-33981029510791334172019-01-03T20:14:13.206-05:002019-01-03T20:14:13.206-05:00Hey Aswath, unless I'm reading the graph wrong...Hey Aswath, unless I'm reading the graph wrong, this portion is incorrect: At its current level of 5.96%, the equity risk premium is in the top decile of historical numbers, exceeded only by the equity risk premiums in three other years, 1979, 2009 and 2011. <br /><br />It should be: 1979, 2008, 2011, and 2015. Will Baohttps://www.blogger.com/profile/03090315488218533716noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-55131637757769358902019-01-03T04:04:06.078-05:002019-01-03T04:04:06.078-05:00your chart on the implied ERP is an interesting - ...your chart on the implied ERP is an interesting - the historical ERP seems to be around 4.2% w/ ~ 1% std around the mean, while other academic papers i studied on this subject seem to imply way more variation in expected (excess) returns over time (where the std of return premia is almost the same size as its level, ie 7% is expected return w/ 5% std!) - seems to be a subtle difference! more on this here: https://faculty.chicagobooth.edu/john.cochrane/research/papers/discount_rates_jf.pdf<br /><br />can you plz help me to reconcile these? thx<br /><br />iasvedonoreply@blogger.com