This is not another Y2K bubble!

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No Asset Is Cheap, But Stocks Are Certainly Not ‘Expensive’. This is Not Y2K

 

Many claim this is a dangerous liquidity bubble, but the data do not bear this out. Valued against liquidity, multiples are undemanding. What’s more, there appears to be a demand for long duration assets that only equities can easily fulfil. Admittedly, it is hard to make a case that stocks are cheap, but, in terms of risk premia, Wall Street is far less stretched than US bonds and the US dollar.

 

 

 

 

 

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