The asset manager for a changing world
Hands_Graph_Finance_1440x300
  • Home
  • Assessing equity valuations in an era of unconventional monetary policy

Assessing equity valuations in an era of unconventional monetary policy

Research papers

BNP Paribas Asset Management
 

In their white paper ‘Measure for measure’, global head of macro-economic research Richard Barwell and senior investment strategist Daniel Morris discuss the equity risk premium as an alternative valuation metric for equities.  

The paper covers:

  • Equity risk premium models
  • Decomposing equity returns
  • Cross-country comparisons
  • Current valuations
  • The dividend discount model and the era of unconventional monetary policy
  • The dividend discount model and the source of the shocks.

Barwell and Morris conclude that the equity risk premium is a useful metric, alongside price/earnings (P/E) ratios, to measure valuations. Given the dramatic changes in monetary policy since the Global Financial Crisis, the extra insight into the impact of interest rates on market prices is particularly valuable.


To discover our funds and select the ones that meet your requirements, click here >

For more insights by BNP Paribas Asset Management, click here >

Any views expressed here are those of the authors as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients.

On the same subject: