Equity Risk Premiums slimmed down

Equity risk premiums slimmed down so much that they now fit in skinny jeans

The thrill of stock investment just got a that less thrilling.

With the S&P 500 flirting with record highs, the extra cash investors pocket for choosing stocks over bonds has hit its skimpiest level since the Spice Girls topped the charts in 2001.

You read that right.

The U.S. equity risk premium is the slimmest in 23 years.

What's the culprit?

A one-two punch of:

1️) Sky-high Treasury yields, thanks to the Fed's interest rate hikes.

2️) An AI-fueled stock market joyride which has pushed equity markets to record highs.

As a result, the gap between the yield of stocks versus bonds has shrivelled MASSIVELY.