JPMorgan says equity risk premium falls to 2.1%, lowest since 2002
AI Summary- JPMorgan says the S&P 500 equity risk premium has declined to its lowest level since 2002.
- 2.1% is about 100 basis points below historical averages and below 2007's 2.4% cycle low.
- JPMorgan identifies greater yield sensitivity, bond preference and pressure on risk parity strategies.