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The Economist: Who low rates are not good for equity returns

Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management (CEAM) at Cambridge Judge Business School, attended an Economist conference, where he was discussing equity returns. “If equity returns are equal to the risk-free rate plus a risk premium, it follows that, other things being equal, a low real interest rate world is also a lower-return world for equities,” Dimson and his colleagues wrote in the Credit Suisse 2013 global investment returns yearbook.

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