Comments on: One Dozen More Notes on the Economic Scene http://alephblog.com/2009/05/20/1729/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Sun, 12 Feb 2012 04:27:21 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Russ Woodhttp://alephblog.com/2009/05/20/1729/comment-page-1/#comment-21796 Russ Wood Thu, 21 May 2009 12:47:57 +0000 http://alephblog.com/?p=1729#comment-21796 Re: #6, Asset Allocation. I share your view of the smaller risk premium. Lots of press recently about bonds beating stocks over recent, long periods. But I think you posted in the past about when to favor corporate bonds over stocks and you estimated a 2.5-3% risk premium for stocks over corporates. Would a 5-7% risk premium over treasuries not be reasonable. Thanks as always for your efforts. Re: #6, Asset Allocation.
I share your view of the smaller risk premium. Lots of press recently about bonds beating stocks over recent, long periods. But I think you posted in the past about when to favor corporate bonds over stocks and you estimated a 2.5-3% risk premium for stocks over corporates. Would a 5-7% risk premium over treasuries not be reasonable.
Thanks as always for your efforts.

]]> By: matthttp://alephblog.com/2009/05/20/1729/comment-page-1/#comment-21792 matt Wed, 20 May 2009 20:57:40 +0000 http://alephblog.com/?p=1729#comment-21792 Underwriting hasn't tightened in Columbus, OH. I know two 23 year-old first time home buyers who just bought houses worth 4 times their income... with no money down. Whatever happened to loan to value ratios under 1? Underwriting hasn’t tightened in Columbus, OH. I know two 23 year-old first time home buyers who just bought houses worth 4 times their income… with no money down.

Whatever happened to loan to value ratios under 1?

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