An interesting article in the FT on U.S. public company valuations and the implied erosion of the equity risk premium ("ERP") given the all-time highs recorded on most US public markets over the past couple of months.  

The implied ERP is something we track regularly at A&M, it was especially relevant at the height of the pandemic when stock prices were at their comparative lowest and the implied ERP sitting at unusually high levels.  

During the last 15 months when there has been significant volatility in pricing, using our developed dataset we can use up to date market data to help price risk, especially for Covid related aspects of client assets or portfolios.  It has certainly not taken long to for any risk premium to erode in the US and now the challenge for stock pickers is to find the quality assets on the market that will deliver the returns above the levels valued in the current stock price.