The Risk Premium in the market place is the amount of "excess return" investors require for holding risk investments like stocks versus risk free investments like Treasury Bonds or cd's. For years, the benchmark risk premium that investors have grown to expect is 7% over the yield of a a risk free investment like a one year cd.
Here are some recent comments by Jeffrey Saut, Investment Strategist at Raymond James. Saut highlights some comments by Alan Greenspan who spoke at a Pimco investment conference.
