Patience And The Long Term Ambiguity Premium

Patience is one of the traits required to be a successful investor so it’s no surprise that a ‘ patience premium ’  is present in the markets. The driving force behind this premium is discussed in a recent research paper on the topic from Igor Yelnik, a Partner, ADG Capital Management LLP. Patience Premium And Ambiguity Premium Based on historical returns, all investors can assume that the US stock market will produce a positive return over the next fifty years. However, we cannot tell where the market will be tomorrow or in two weeks’ time. This effect is immediately explained…