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Still far from an unsustainable US stock market valuation

Although the US stock market has started to come under pressure from rising Treasury yields, the valuation of equities relative to government bonds is still a long way from being as stretched as it was before the dot com bubble burst and on the eve of the Great Crash of 1929. This suggests to us that there is ample scope for an AI-fuelled bubble in the stock market to reflate before ultimately bursting.

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