TY - JOUR T1 - Using the Supply-Side Approach to Understand and Estimate Equity Returns JF - The Journal of Portfolio Management SP - 76 LP - 85 DO - 10.3905/jpm.2006.661378 VL - 33 IS - 1 AU - Charles P. Jones AU - Jack W. Wilson Y1 - 2006/10/31 UR - https://pm-research.com/content/33/1/76.abstract N2 - A supply-side analysis of the average stock returns over 1926-2004 helps us see how components that include real earnings growth and the price-earnings ratio have contributed to the average total return. The long-run sustainable average equity return can be expressed as a benchmark expected equity return. An innovation is that investors can use a supply-side model as a disciplined framework for estimating average equity returns over much shorter periods than the 80-year sample analyzed.TOPICS: Quantitative methods, equity portfolio management, security analysis and valuation ER -