Clifford S. Asness discusses a recent roundtable meeting on the equity risk premium (ERP) where forecasts for the future ERP were below historical levels. Reasons for this may be that previous levels were an accident or that valuations are just too high. He also discusses questions about mean reversion and the predictive power of valuations and gives his thoughts on the equity risk puzzle, the biggest drivers for ERP, and the effectiveness of quantitative models.

The Take 15 Series is a series of short interviews with leading practitioners on timely topics focused on the investment profession.