Are Stocks Cheap? A Review of the Evidence

Fernando Duarte and Carlo Rosa

No 20130508, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: We surveyed banks, we combed the academic literature, we asked economists at central banks. It turns out that most of their models predict that we will enjoy historically high excess returns for the S&P 500 for the next five years. But how do they reach this conclusion? Why is it that the equity premium is so high? And more importantly: Can we trust their models?

Keywords: term structures; excess returns; stock returns; S&P 500; Treasury yield; Equity premium (search for similar items in EconPapers)
JEL-codes: G1 (search for similar items in EconPapers)
Date: 2013-05-08
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://libertystreeteconomics.newyorkfed.org/2013 ... of-the-evidence.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fednls:86869

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Liberty Street Economics from Federal Reserve Bank of New York Contact information at EDIRC.
Bibliographic data for series maintained by Gabriella Bucciarelli ().