What are the factors behind current high stock market valuations?

Stalla-Bourdillon, Arthur; Chatelais, N.

Stalla-Bourdillon, Arthur; Chatelais, N. (2020), What are the factors behind current high stock market valuations?, Bloc-notes éco, 189

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https://blocnotesdeleco.banque-france.fr/en/blog-entry/what-are-factors-behind-current-high-stock-market-valuations

Date

2020

Nom de la revue

Bloc-notes éco

Numéro

189

Éditeur

Banque de France

Métadonnées

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Auteur(s)

Stalla-Bourdillon, Arthur
Chatelais, N.

Résumé (EN)

Despite the corrections at the end of 2018 and the Covid-19 shock, price-earnings ratios remain at high levels, particularly in the United States. However, based on indices adjusted for expected growth and the level of interest rates, this trend does not appear to be the result of irrational exuberance like in previous speculative episodes.

Mots-clés

Relative Return Indicator; risk tolerance; Risk-free rate; markets; E43,E44,D81,332/Bourse, Marchés financiers. Taux d’intérêt – Stocks options – Analyse Financière