One factor that could alter the judgement on current stock market prices are long-term interest rates, indicators of the alternative no-risk returns to the stockmarket, which are not fixed directly by the central banks but by the market itself.
US stock market
It’s clear that the prices of physical and financial assets are growing a lot, while debts are increasing strongly. As experience shows, it’s difficult for everything to get back to normal systematically.
Nobody really knows why volatility has disappeared. In theory, there are more than enough reasons for the market to be nervous, and for investors to take advantage of this to obtain higher returns.
Yesterday, Apple presented the iPhone X, a new version of the phone which incorporates the biggest change in design since its launch in 2007. The new iPhone X will sell for 999$.
The US stock market represents 54% of the MSCI world markets’ index and 60% of the MSCI for developed countries, according to The Economist. It’s another indicator to add to those we have mentioned before which point to the US market being overvalued.