We believe the surge in global asset prices owes much more to falling risk premiums associated with a fundamental improvement in the economic outlook than to a wave of liquidity created by central banks. Nonetheless, the absence of bubbles does not mean that the prices of riskier assets will hold onto their recent gains if, as we expect, the fundamentals ultimately disappoint.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services