Another year draws to a close so it's that time again...Market Risk Premium of the ASX200.
Usually methodology. 2.5 years of daily returns. Annual capital yield = 11.32%
Average Dividend yield over the same period = 4.43%
Therefore Market return = 15.75% (Good stuff ASX!)
Average 10 year bond yields have reduced to 3.56%
Meaning we have a Market Risk Premium that has increased over the last 6 months to 12.19% (up around 18 basis points)
Not bad going. No correction as yet which surprises me a little. Especially the consistent Market returns of 15%+.
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