Do valuations point to a re-run of 2007?

A decade after the start of the global financial crisis (GFC), some are of the view that history may be about to repeat itself, given the similarly-high valuations of equities and corporate bonds in the US. However, the valuation of housing there is nowhere near as stretched, which is a key reason why house prices are far less likely to collapse. This is important because it is their collapse which triggered the GFC and in its wake the deepest recession since the Great Depression of the 1930s.