Word: hassett
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...HASSETT I took a huge loss on my index bonds. I bought them like three or four years ago, and the rate was down like...
...HASSETT But what you are saying is that those index bonds are not risky if you hold them for 30 years. Well, that's true for stocks...
...HASSETT No. People have learned the right strategy. They have learned to buy and hold for the long term...
...HASSETT The equity risk premium has declined. Let's define this, by the way. Equity risk premium is the extra return that investors demand because they think stocks are riskier than the benchmark [30-year Treasury] bond. O.K., it has declined roughly from 7% to 3%. [A decline drives up prices.] Alan Greenspan says, "The question is, Is this decline temporary or is it permanent?" We offer a third alternative we think is a reasonable alternative, which is, Will it continue [to decline] to what we believe to be its reasonable resting place, which is around zero? If stocks...
Robert Shiller is a professor of economics at Yale. James Glassman and Kevin Hassett are resident scholars at the American Enterprise Institute