Wall Street Versus Main Street: Are Stocks in a Bubble?
- The stock market seems disconnected from the dire economic environment, but our Head of Global Multi-Asset Sébastien Page does not believe that stocks are in a bubble.
- Stock prices are based on anticipated earnings—not current conditions—and interest rates have fallen meaningfully, which justifies higher valuations.
- Unprecedented massive stimulus measures are supporting markets, and in our view the economy seems to be closely following the path of the 2009 recovery.
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