Data Update 2 for 2023: A Rocky Year for Equities!

In this session, I first look back at equities in 2022, focusing on the S&P 500 and put the year (and its negative returns) in historical perspective. I then move on to looking at how the year's price movement has affected expected returns on stocks, where a combination of rising riskfree rates and equity risk premiums have pushed up expected returns to levels not seen in 25 years. Those expected returns become costs of equity for companies, with new investments needing to pass higher hurdles to be good investments. I end the session with a market consensus valuation of the S&P 500, together with valuations as a function of your views on inflation and the economy this year.(If you have trouble with downloads, please try a different browser...)Blog Post: https://aswathdamodaran.blogspot.com/2023/01/data-update-2-for-2023-rocky-year-for.htmlSlides: https://pages.stern.nyu.edu/~adamodar/pdfiles/blog/DataUpdate2for2023.pdfHistorical Returns on Stocks, Bonds, Bills & Other Assets from 1928 to 2022: https://pages.stern.nyu.edu/~adamodar/pc/datasets/histretSP.xlsxHistorical Implied Equity Risk Premiums for US from 1960 to 2022: https://pages.stern.nyu.edu/~adamodar/pc/datasets/histimpl.xlsSpreadsheet to estimate implied ERP: https://pages.stern.nyu.edu/~adamodar/pc/implprem/ERPJan23.xlsxSpreadsheet to value S&P 500:https://pages.stern.nyu.edu/~adamodar/pc/blog/S&P500ValueJan2023.xlsx Learn more about your ad choices. Visit megaphone.fm/adchoices