US Equities More Attractive Than Bonds for First Time Since June 2023, US Equity Risk Premium at 4.49, Says SocGen

Recent analysis indicates a shift in the attractiveness of US equities compared to bonds, marking the first time since June 2023 that US equities are considered more appealing. According to Société Générale (SocGen), the US equity risk premium has risen to 4.49, suggesting that stocks are now cheaper relative to bonds. This change is attributed to movements in both equity prices and bond yields, which have contributed to the current market dynamics. Analysts note that this development could influence investment strategies as investors reassess their portfolios in light of these changing valuations.