Patience is one of the traits required to be a successful investor so it’s no surprise that a ‘ patience premium ’ is present in the markets. The driving force behind this premium is discussed in a recent research paper on the topic from Igor Yelnik, a Partner, ADG Capital Management LLP. Patience Premium And Ambiguity Premium Based on historical returns, all investors can assume that the US stock market will produce a positive return over the next fifty years. However, we cannot tell where the market will be tomorrow or in two weeks’ time. This effect is immediately explained…
Patience And The Long Term Ambiguity Premium
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